A Company Reported an Increase in Accounts Payable and a Decrease

Question 93

Multiple Choice

A company reported an increase in accounts payable and a decrease in inventory during 2019.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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Q 94

A company reported an increase in accounts receivable and an increase in unearned sales revenues during 2019.Which of the following statements is correct? A)Cash collected from customers equals sales revenues plus both the increase in accounts receivable and the increase in unearned sales revenues. B)Cash collected from customers equals sales revenues minus both the increase in accounts receivable and the increase in unearned sales revenues. C)Cash collected from customers equals sales revenues plus the increase in accounts receivable,minus the increase in unearned sales revenues. D)Cash collected from customers equals sales revenues minus the increase in accounts receivable,plus the increase in unearned sales revenues.

Q 95

A company reported an increase in prepaid rent and an increase in accrued liabilities during 2019.Which of the following statements is correct? A)When determining cash paid for operating expenses,both the increase in prepaid rent and the increase in accrued liabilities are subtracted from operating expenses. B)When determining cash paid for operating expenses,both the increase in prepaid rent and the increase in accrued liabilities are added to operating expenses. C)When determining cash paid for operating expenses,the increase in prepaid rent is added to operating expenses and the increase in accrued liabilities is subtracted from operating expenses. D)When determining cash paid for operating expenses,the increase in prepaid rent is subtracted from operating expenses and the increase in accrued liabilities is added to operating expenses.

Q 96

A company reported an increase in accrued sales revenues and a decrease in unearned sales revenues during 2019.Which of the following statements is correct? A)When determining cash collected from customers,both the increase in accrued revenues and the decrease in unearned revenues are subtracted from sales revenues. B)When determining cash collected from customers,both the increase in accrued revenues and the decrease in unearned revenues are added to sales revenues. C)When determining cash collected from customers,the increase in accrued revenues is subtracted from sales revenues and the decrease in unearned revenues is added to sales revenues. D)When determining cash collected from customers,the increase in accrued revenues is added to sales revenues and the decrease in unearned revenues is subtracted from sales revenues.