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Increase in accounts payable represents cash flow in true or false?

1 Answer

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Final answer:

An increase in accounts payable does not represent cash flow.

Step-by-step explanation:

False. An increase in accounts payable does not represent cash flow. Accounts payable is a liability on the balance sheet that represents the amount owed by a business to its suppliers for goods or services purchased on credit. It indicates that the business has received goods or services without making an immediate payment.

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