Which of the Following Transactions Will Decrease the Accounts Payable

question 45

Multiple Choice

Which of the following transactions will decrease the accounts payable turnover ratio?

• A)Using cash to pay an accounts payable balance.
• B)Selling inventory on account.
• C)Selling inventory for cash.
• D)A customer returning inventory purchased on account.

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Definitions:

Corporate Tax Rate

The percentage of a corporation's income that is taken as tax by the government.

Depreciation Tax Shield

A decrease in taxable income for businesses due to the allowance for depreciation, resulting in a lower tax liability.

Projects

Specific, planned activities with defined goals and objectives, undertaken to achieve a desired outcome.