West Company's accountant recorded a debit to Accounts Payable and a credit to Cash. This transaction will:
A) decrease Cash and decrease Accounts Payable
B) increase Cash and increase Accounts Payable
C) increase Cash and decrease Accounts Payable
D) decrease Cash and increase Accounts Payable

Question

Quizplus · Accepted Answer

A debit to Accounts Payable decreases the liability, and a credit to Cash decreases the asset, thus decreasing both Accounts Payable and Cash.

West Company's Accountant Recorded a Debit to Accounts Payable and a Credit