Increase in the amount of creditors results in
A)Decrease in cash
B)Increase in cash
C)No change in cash
D)None of the above

Name: Increase in the amount of creditors results in A)Decrease in cash B)Increase in cash C)No change in cash D)None of the above
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in creditors means that the company has more outstanding liabilities, which often results in an increase in cash as the company retains cash that would otherwise be used to pay off these liabilities.

Increase in the Amount of Creditors Results in