If a journal entry debits Accounts Payable and credits Cash, it can be determined that:
A) cash will have a credit balance.
B) accounts payable increased.
C) cash was increased.
D) accounts payable decreased.

Question

Quizplus · Accepted Answer

Debiting Accounts Payable decreases the liability, indicating that the amount owed has been paid off, while crediting Cash decreases the asset, indicating cash was used to pay the liability.

If a Journal Entry Debits Accounts Payable and Credits Cash