Whether decrease in accounts payable will decrease cash. Introduction: Any payment of cash made by the company to its creditors are termed as accounts payable

Question

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Answer 1

Question

Chapter 16, Problem 16.1C

Summary Introduction

To discuss: Whether decrease in accounts payable will decrease cash.

Introduction:

Any payment of cash made by the company to its creditors are termed as accounts payable

Expert Solution & Answer

Explanation of Solution

Companies use cash for the day-to-day operations of the business. Accounts payable means the company uses the cash to pay off its creditors. This will reduce the cash balance. Decrease in accounts payable will ultimately decrease the cash balance. As the company pays off its creditors, it will lead to a reduction in the value of cash balance.

Conclusion

Thus, decrease in accounts payable will ultimately affects the cash flow of the company.

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Answer 2

Question

Chapter 16, Problem 16.1C

Summary Introduction

To discuss: Whether decrease in accounts payable will decrease cash.

Introduction:

Any payment of cash made by the company to its creditors are termed as accounts payable

Expert Solution & Answer

Explanation of Solution

Companies use cash for the day-to-day operations of the business. Accounts payable means the company uses the cash to pay off its creditors. This will reduce the cash balance. Decrease in accounts payable will ultimately decrease the cash balance. As the company pays off its creditors, it will lead to a reduction in the value of cash balance.

Conclusion

Thus, decrease in accounts payable will ultimately affects the cash flow of the company.

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Answer 3

Question

Chapter 16, Problem 16.1C

Summary Introduction

To discuss: Whether decrease in accounts payable will decrease cash.

Introduction:

Any payment of cash made by the company to its creditors are termed as accounts payable

Expert Solution & Answer

Explanation of Solution

Companies use cash for the day-to-day operations of the business. Accounts payable means the company uses the cash to pay off its creditors. This will reduce the cash balance. Decrease in accounts payable will ultimately decrease the cash balance. As the company pays off its creditors, it will lead to a reduction in the value of cash balance.

Conclusion

Thus, decrease in accounts payable will ultimately affects the cash flow of the company.

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Answer 4

Question

Chapter 16, Problem 16.1C

Summary Introduction

To discuss: Whether decrease in accounts payable will decrease cash.

Introduction:

Any payment of cash made by the company to its creditors are termed as accounts payable

Expert Solution & Answer

Explanation of Solution

Companies use cash for the day-to-day operations of the business. Accounts payable means the company uses the cash to pay off its creditors. This will reduce the cash balance. Decrease in accounts payable will ultimately decrease the cash balance. As the company pays off its creditors, it will lead to a reduction in the value of cash balance.

Conclusion

Thus, decrease in accounts payable will ultimately affects the cash flow of the company.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 16, Problem 16.1C

Summary Introduction

To discuss: Whether decrease in accounts payable will decrease cash.

Introduction:

Any payment of cash made by the company to its creditors are termed as accounts payable

Expert Solution & Answer

Explanation of Solution

Companies use cash for the day-to-day operations of the business. Accounts payable means the company uses the cash to pay off its creditors. This will reduce the cash balance. Decrease in accounts payable will ultimately decrease the cash balance. As the company pays off its creditors, it will lead to a reduction in the value of cash balance.

Conclusion

Thus, decrease in accounts payable will ultimately affects the cash flow of the company.

Answer 6

Chapter 16, Problem 16.1C

Summary Introduction

To discuss: Whether decrease in accounts payable will decrease cash.

Introduction:

Any payment of cash made by the company to its creditors are termed as accounts payable

Expert Solution & Answer

Explanation of Solution

Companies use cash for the day-to-day operations of the business. Accounts payable means the company uses the cash to pay off its creditors. This will reduce the cash balance. Decrease in accounts payable will ultimately decrease the cash balance. As the company pays off its creditors, it will lead to a reduction in the value of cash balance.

Conclusion

Thus, decrease in accounts payable will ultimately affects the cash flow of the company.

Answer 7

Chapter 16, Problem 16.1C

Summary Introduction

To discuss: Whether decrease in accounts payable will decrease cash.

Introduction:

Any payment of cash made by the company to its creditors are termed as accounts payable

Answer 8

Expert Solution & Answer

Explanation of Solution

Companies use cash for the day-to-day operations of the business. Accounts payable means the company uses the cash to pay off its creditors. This will reduce the cash balance. Decrease in accounts payable will ultimately decrease the cash balance. As the company pays off its creditors, it will lead to a reduction in the value of cash balance.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Conclusion

Thus, decrease in accounts payable will ultimately affects the cash flow of the company.

Answer 12

Ch. 16.1 - What is the difference between net working capital...Ch. 16.1 - Prob. 16.1BCQ Ch. 16.1 - Prob. 16.1CCQ Ch. 16.1 - List five potential sources of cash.Ch. 16.2 - What does it mean to say that a firm has an...Ch. 16.2 - Prob. 16.2BCQ Ch. 16.2 - Prob. 16.2CCQ Ch. 16.3 - Prob. 16.3ACQ Ch. 16.3 - Prob. 16.3BCQ Ch. 16.4 - Prob. 16.4ACQ

Whether decrease in accounts payable will decrease cash. Introduction: Any payment of cash made by the company to its creditors are termed as accounts payable

To discuss: Whether decrease in accounts payable will decrease cash. Introduction: Any payment of cash made by the company to its creditors are termed as accounts payable

Explanation of Solution

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Chapter 16 Solutions

To discuss: Whether decrease in accounts payable will decrease cash.

Introduction:

Any payment of cash made by the company to its creditors are termed as accounts payable