If a company had growing sales, which of the following would normally be expected on the Statement of Cash Flows?
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, and an increase in accounts payable as the company may purchase more inventory on credit to support the sales growth.

If a Company Had Growing Sales, Which of the Following