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A Business Makes a Cash Payment of $12,000 to a Creditor

Question 16

Multiple Choice

A business makes a cash payment of $12,000 to a creditor. Which of the following occurs?


A) Cash is credited for $12,000.
B) Cash is debited for $12,000.
C) Accounts payable is credited for $12,000.
D) Both A and C occur.

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