When a Company Increases Trade Payables from One Year to the Next,what

question 34

Multiple Choice

When a company increases trade payables from one year to the next,what is the effect on cash flows?

• A)A decrease in cash caused by paying down our debt to vendors.
• B)An increase in cash because we have not paid cash for all the inventory and services purchased on credit during the period.
• C)A decrease to cash because we will have to pay these liabilities in the future.
• D)An increase to cash because we have received cash from vendors.

---

Definitions:

Feedly

An aggregator application for web browsers and mobile devices designed to compile news feeds from a variety of online sources.

The Web

Commonly known as the World Wide Web, it is a system of interconnected documents and web resources, linked by hyperlinks and accessible over the Internet.

The Internet

A global network of interconnected computers and servers that enables information sharing and communication across the world.

Encryption

The process of converting information or data into a secure format to prevent unauthorized access, ensuring confidentiality.