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If a company starts operating in April, and pays its Accounts Payable for each month in the following month, and expenses for April are $30,000,
If a company starts operating in April, and pays its Accounts Payable for each month in the following month, and expenses for April are $30,000, of which 50% are paid immediately in cash, the other 50% becoming Accounts Payable, then
a. | the company will pay no Accounts Payable bills in April. | |
b. | the company will pay $30,000 of Accounts Payable in April. | |
c. | the company will have no Accounts Payable bills to pay in May. | |
d. | BOTH b and c above are correct! | |
e. | none of the above. |
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