A Company Reported an Increase in Accounts Payable and a Decrease

question 101

Multiple Choice

A company reported an increase in accounts payable and a decrease in inventory during 2016. Which of the following statements is correct?

• A)Cash paid to suppliers equals cost of goods sold plus both the increase in accounts payable and the decrease in inventory.
• B)Cash paid to suppliers equals cost of goods sold minus both the increase in accounts payable and the decrease in inventory.
• C)Cash paid to suppliers equals cost of goods sold minus the increase in accounts payable, plus the decrease in inventory.
• D)Cash paid to suppliers equals cost of goods sold plus the increase in accounts payable, minus the decrease in inventory.

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Definitions:

Amphetamines

Amphetamines are a type of stimulant medication used to treat conditions like ADHD and narcolepsy by increasing focus, attention, and energy levels through central nervous system activation.

Dopamine

A neurotransmitter involved in controlling the brain's reward and pleasure centers, as well as regulating movement and emotional responses.

Frontal Cortex

The part of the brain located in the front of the head, responsible for decision making, problem solving, and controlling behavior.

Stimulants

Substances that increase activity in the central nervous system or body, often enhancing alertness and energy.