A payment of accounts payable would:
A) decrease liabilities and increase owner's equity.
B) decrease assets and decrease liabilities.
C) decrease liabilities and decrease owner's equity.
D) increase assets and increase liabilities.

Question

Quizplus · Accepted Answer

A payment of accounts payable decreases liabilities because the obligation to pay is settled, and it decreases assets because cash or another asset is used to make the payment.

A Payment of Accounts Payable Would