If accounts payable have increased during a period,
A) revenues on an accrual basis are less than revenues on a cash basis
B) expenses on an accrual basis are less than expenses on a cash basis
C) expenses on an accrual basis are the same as expenses on a cash basis
D) expenses on an accrual basis are greater than expenses on a cash basis

Question

Quizplus · Accepted Answer

An increase in accounts payable means that more expenses were recorded on an accrual basis than were actually paid in cash during the period. Therefore, expenses on an accrual basis are greater than expenses on a cash basis.

If Accounts Payable Have Increased During a Period