During 2014, the Accounts Payable Balance Decreased

question 28

Multiple Choice

During 2014, the accounts payable balance decreased.

• A)This decrease indicates that payments on account were less during the period than credit purchases.
• B)This decrease is added to net income in the operating activities section of a statement of cash flows prepared under the direct method.
• C)This decrease is deducted from net income in the operating activities section of a statement of cash flows prepared under the direct method.
• D)This decrease indicates that payments on account exceeded credit purchases during the period.