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Q: What does the increase of accounts payable on the statement of cash flow show?
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Increase in accounts payable Statement of Cash Flows?

Increase in accounts payable means increase in cash as if cash was paid there was no increase in accounts payable but as no payment done it saves the cash and causes the increase in actual cash.


What affect does an increase or decrease in accounts payable have on the statement of cash flow?

It effects in working capital changes in cash flow


How do you figure cash paid for goods sold on a cash flow statement?

it is shown with changes in accounts payable amount if there is change in accounts payable it will shown in cash flow statement.


When using the indirect method how is the decrease in accounts payable shown on the statement of cash flows?

Decrease in accounts payable is shown as a decrease in cash under cash flows from operating activities because cash goes out when we pay the accounts payable.


Accompanying the bank statement was a debit memorandum for bank service charges what entry is required in the depositor's account?

increase cash, increase accounts payable


Does a decrease in accounts payable increase cash flow?

Decrease in accounts payable causes the decrease in cash flow because decrease in accounts payable means that creditors are paid of and hence cash is decreased when somebody paid.


What causes accounts payable to increase or decrease?

When an item is purchased on credit accounts payable increases. For example if you purchase something for $250 on credit this is the entry to increase accounts payable. Purchases 250 Accounts Payable 250 When you pay for your purchases it will decrease accounts payable. Accounts Payable 250 Cash 250


Interest payable effect on Cash flow statement?

interest payable will increase the cash as if actually cash paid then it will reduce the cash but delayed in cash payment increase the cash for other purposes.


Do increase in accounts payable increase or decrease cash flow?

Increase in Accounts payable increases the cash flow because if we had paid accounts payable it will reduce our cash immediately but instead of paying cash we defferred the payment for future time and save the cash that's why it increases the cash flow. Following are simple rules to determine effect on cash flow increase in asset reduces the cash flow decrease in asset increase the cash flow increase in liability increase the cash flow decrease in liability decrease the cash flow


Does an increase in accounts payable on the satatement a positive effect on the cash flow?

Increase in accounts payable will increase the cash inflow because if the cash is paid instead of credit purchases company has to pay cash which reduces the cash but as purchases has made on credit and no cash has to be paid that's why it has positive impact on cash flow.


Does cash flow statement show sales?

cash flow statement don't show the sales but changes in accounts receivable and payable are shown in it.


Why are increase in accounts receivable a cash reduction on the flow statement?

Increase in accounts receivable causes the reduction in cash because if sales are made on cash then there is no increase in accounts receivable and company receives cash which causes the increase in cash while accounts receivable not.