Was asked this question in 3 of my most recent interviews. What happens when accounts payable does up by 10? I'm not really sure about the correct answer for this one. Thank you so much!
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Cash goes up by 10 thus balancing the BS
you're oversimplifying
Concur.
Clearly depends on what your AP is for (raw mat, service...)
Means another point for my Fantasy Football team.
Probably associated with a expense of some kind (eg supplies exp) OR acquisition of inventory (capitalized in current assets)
If the expense, equity goes down (retained earnings); if the acquisition of inventory, inventory goes up -- either way balance sheet balances
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