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Given a fixed level of sales and a constant profit margin, an increase in the accounts payable period can result from: an increase in the cash cycle. a decrease in the operating cycle. an increase in the ending accounts payable balance. an increase in the cost of goods sold account value. a decrease in the average accounts payable balance.

Respuesta :

an increase in the ending accounts payable balance.

How is the balance of accounts payable determined?

  • The amount that flows to the accounts payable balance on the business's current period balance sheet is represented by the ending balance in the accounts payable (A/P) roll-forward schedule.
  • On a company's balance sheet, accounts payable are listed. Given that it is money owing to creditors and appears on the balance sheet under current liabilities, accounts payable is a liability. Current liabilities are a company's short-term debts, usually lasting less than three months.

What Does an Accounts Payable Expense Example Look Like?

  • Logistics and transport.
  • Rough Materials
  • Fuel, power, and energy.
  • Products and apparatus.
  • Leasing.
  • Licensing.
  • Assembly and subcontracting services

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