Etiwanda Company's accountant recorded a debit to Accounts Payable and a credit to Cash.This transaction will_____.
A)increase Cash and decrease Accounts Payable
B)decrease Cash and increase Accounts Payable
C)increase Cash and increase Accounts Payable
D)decrease Cash and decrease Accounts Payable

Question

Quizplus · Accepted Answer

Debiting Accounts Payable decreases the liability, and crediting Cash decreases the asset, thus both Cash and Accounts Payable decrease.

Etiwanda Company's Accountant Recorded a Debit to Accounts Payable and a Credit