Which One of the Following Will Increase the Accounts Payable

question 30

Multiple Choice

Which one of the following will increase the accounts payable period,all else constant?

• A) an increase in the cost of goods sold account value
• B) an increase in the ending accounts payable balance
• C) an increase in the cash cycle
• D) a decrease in the operating cycle
• E) a decrease in the average accounts payable balance

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Definitions:

Demand

The willingness and ability of consumers to purchase goods or services at a given price level.

Supply

The complete quantity of a product or service that can be bought at a particular price point.

Price Floor

A legally established minimum price for a good, or service. Normally set at a price above the equilibrium price.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and a high level of competition.