Which of the following describes the impact on the balance sheet of paying a current liability using cash?

Question

Quizplus · Accepted Answer

Paying a current liability using cash will result in a decrease in current assets on the balance sheet, as cash is used to satisfy the obligation. The other options are incorrect because paying a current liability does not result in an increase in current liabilities or a decrease in stockholders' equity, and total assets do not remain the same as current assets decrease.

Which of the Following Describes the Impact on the Balance