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A Business Pays Off a Note Payable

Question 91

Multiple Choice

A business pays off a note payable.What effect does this have on the accounting equation?


A) Assets go up,Liabilities go down,and Stockholders' Equity remains the same.
B) Assets go down,Liabilities remain the same,and Stockholders' Equity goes up.
C) Assets go down,Liabilities go down,and Stockholders' Equity remains the same.
D) Assets go up,Liabilities remain the same,and Stockholders' Equity goes up.

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