A business pays off a note payable. What effect does this have on the accounting equation? A. Assets increase, Liabilities remain the same, and Stockholders' Equity increases. B. Assets increase, Liabilities decrease, and Stockholders' Equity remains the same. C. Assets decrease, Liabilities remain the same, and Stockholders' Equity increases. D. Assets decrease, Liabilities decrease, and Stockholders' Equity remains the same
A business pays off a note payable. What effect does this have on the accounting equation? A. Assets increase, Liabilities remain the same, and Stockholders' Equity increases. B. Assets increase, Liabilities decrease, and Stockholders' Equity remains the same. C. Assets decrease, Liabilities remain the same, and Stockholders' Equity increases. D. Assets decrease, Liabilities decrease, and Stockholders' Equity remains the same
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![A business pays off a note payable. What effect does this have on the accounting equation?
A. Assets increase, Liabilities remain the same, and Stockholders' Equity increases.
B. Assets increase, Liabilities decrease, and Stockholders' Equity remains the same.
C. Assets decrease, Liabilities remain the same, and Stockholders' Equity increases.
D. Assets decrease, Liabilities decrease, and Stockholders' Equity remains the same](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F852dfa7b-0484-4d04-af34-5755d5fefa78%2Fd6764175-8a0e-4083-b38d-5c73a26f6e3d%2Fxhmgfaa_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A business pays off a note payable. What effect does this have on the accounting equation?
A. Assets increase, Liabilities remain the same, and Stockholders' Equity increases.
B. Assets increase, Liabilities decrease, and Stockholders' Equity remains the same.
C. Assets decrease, Liabilities remain the same, and Stockholders' Equity increases.
D. Assets decrease, Liabilities decrease, and Stockholders' Equity remains the same
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