The payment of accounts payable results in an
A) decrease in liabilities and a decrease in assets.
B) decrease in liabilities and an increase in owners' equity.
C) decrease in liabilities and an increase in assets.
D) increase in liabilities and a decrease in owners' equity.

Question

Quizplus · Accepted Answer

When accounts payable are paid, liabilities decrease because the obligation is settled, and assets decrease because cash or another asset is used to make the payment.

The Payment of Accounts Payable Results in an