A cash payment of an account payable would:
A)decrease total assets and decrease owner's equity.
B)increase total assets and decrease liabilities.
C)have no effect on total assets.
D)decrease liabilities and decrease assets.

Question

Quizplus · Accepted Answer

Paying off an account payable with cash decreases the cash asset (a decrease in total assets) and decreases the accounts payable liability (a decrease in liabilities).

A Cash Payment of an Account Payable Would