Accounts payable are illustrative of liabilities that spontaneously vary with the level of sales.

Name: Accounts payable are illustrative of liabilities that spontaneously vary with the level of sales.
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Question

Accounts payable are illustrative of liabilities that spontaneously vary with the level of sales.​

Quizplus · Accepted Answer

Accounts payable increase as a company purchases more goods and services on credit, which is directly related to the level of sales. Therefore, accounts payable are considered a liability that spontaneously varies with the level of sales.

Accounts Payable Are Illustrative of Liabilities That Spontaneously Vary with the Level