Increase in Accounts payable when compared to previous year results in …………….of working capital
A)increase
B)decrease
C)no change
D)none of these

Question

Quizplus · Accepted Answer

An increase in accounts payable indicates that the company is delaying payments to its suppliers, which effectively reduces the amount of working capital needed, thus resulting in a decrease in working capital.

Increase in Accounts Payable When Compared to Previous Year Results