AP goes up by 10

cicit123's picture
Rank: Baboon | 156

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!

Comments (7)

Feb 10, 2017

Cash goes up by 10 thus balancing the BS

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Feb 10, 2017

you're oversimplifying

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Feb 10, 2017

Concur.

Feb 10, 2017

Clearly depends on what your AP is for (raw mat, service...)

Best Response
Feb 10, 2017

Means another point for my Fantasy Football team.

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Feb 10, 2017

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

Feb 10, 2017
Comment

I always tell the truth. Even when I lie.

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