If a business pays $1,100 on account to a creditor, the effect of the payment is a decrease to cash and a

Question

Quizplus · Accepted Answer

When a business pays $1,100 on account to a creditor, it reduces its accounts payable balance by $1,100, which is a liability account. Therefore, the correct answer is D) decrease to accounts payable. There is no effect on Fees Income or capital, and accounts receivable is not involved in this transaction.

If a Business Pays $1,100 on Account to a Creditor