For EFG Co. ,the transaction "Payment to creditors" would
A)increase total assets.
B)decrease total assets.
C)have no effect on total assets.
D)decrease stockholders' equity.

Question

Quizplus · Accepted Answer

Payment to creditors means paying off the company's debts or liabilities. This will result in a decrease in the total assets of the company as it reduces the amount of cash or other assets available. It has no direct effect on stockholders' equity.