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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

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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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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