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 greater than expenses on a cash basis.
D)expenses on an accrual basis are the same as expenses on a cash basis.

Question

Quizplus · Accepted Answer

An increase in accounts payable indicates that expenses have been incurred but not yet paid, meaning expenses on an accrual basis are greater than on a cash basis.

If Accounts Payable Have Increased During a Period