Kizspy | Question: 6 (Choose 1 answer)
If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and
equity?
A. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000.
B. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000.
C. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change.
D. There would be no effect on the accounts because the accounts are affected by the same amount.
E. None of these.
