The payment of an amount owed to a supplier would:
A)have no effect on total assets or liabilities.
B)increase owner's equity and liabilities.
C)decrease net income and increase assets.
D)decrease assets and liabilities.

Question

Quizplus · Accepted Answer

Paying a supplier decreases the company's cash (an asset) and decreases accounts payable (a liability), thus reducing both assets and liabilities.

The Payment of an Amount Owed to a Supplier Would