If a company had growing sales, which of the following would normally be expected on the cash flow statement?
A)An increase in both accounts receivable and accounts payable.
B)A decrease in both accounts receivable and accounts payable.
C)A decrease in accounts receivable and an increase in accounts payable.
D)An increase in accounts receivable and a decrease in accounts payable.

Question

Quizplus · Accepted Answer

Growing sales typically lead to an increase in accounts receivable as more sales are made on credit. Accounts payable may also increase as the company purchases more inventory or services to support the growing sales.

If a Company Had Growing Sales, Which of the Following