The Accounts Payable Balance Has Increased During the Year

question 103

Multiple Choice

The Accounts Payable balance has increased during the year. How would this event affect the statement of cash flows operations section-indirect method?

• A) It is already included in the net income.
• B) It would affect the operations section positively.
• C) It would affect the operations section negatively.
• D) Does not affect the cash flow from operations.

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Definitions:

Complementary

Goods or services that are used together, where the consumption or use of one increases the value or demand for the other.

Fixed Proportions

A production condition where inputs are used in constant ratios, without substitution between them, over a range of output levels.

Demand for Labor

The total amount of workers that employers want to hire at a given wage rate and time.

Productivity of Labor

The output per labor hour or worker, indicating how efficiently labor is used in the production of goods and services.