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relationship between A/P and expenses
Heyrinsa - 06/20/2019, 12:16 pm

I didn't get the choice " a decrease in A/P would indicate a decrease in expenses", why is that?

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Srinivasan - 07/14/2019, 2:14 am

Les us assume typical monthly expense incurred is $1000 with payment to vendor due in 30 days, which will get reflected in the A/P as $ 1000; if the corporation has decrease incurring expense, say, by 50 %, thus expense is $500 and thus the related A/P will be $ 500 only.

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