Comparing the Number of Days Purchases in Trade Payables with Prior

question 62

True/False

Comparing the number of days purchases in trade payables with prior years would provide persuasive evidence of accounts payable.

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Definitions:

Cash Distribution

The payment of earnings or capital to shareholders, partners, or members from a corporation, partnership, or other entity, typically in the form of cash.

Noncash Assets

Assets that are not in the form of cash or cash equivalents, including physical property, intellectual property, and investments.

Remaining Cash

The amount of money that is available after all expenses and liabilities have been paid.

Capital Balances

The amount of money that partners or shareholders have contributed to a company, plus retained earnings or minus losses.