Which of the following is most likely to increase the final number for notes payable in the pro forma balance sheet?
A) decrease in inventory.
B) increase in retained earnings.
C) decrease in accounts payable.
D) decrease in accounts receivable.

Question

Quizplus · Accepted Answer

Decrease in accounts payable means the company has paid off some of its debts, resulting in an increase in the notes payable in the pro forma balance sheet. A decrease in inventory or accounts receivable could potentially decrease the notes payable, while an increase in retained earnings does not directly affect the notes payable.

Which of the Following Is Most Likely to Increase the Final