If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity? A. B. C. D. Group of answer choices Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change. There would be no effect on the accounts because the accounts are affected by the same amount. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000.
If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity? A. B. C. D. Group of answer choices Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change. There would be no effect on the accounts because the accounts are affected by the same amount. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity?
A.
B.
C.
D.
Group of answer choices
Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change.
There would be no effect on the accounts because the accounts are affected by the same amount.
Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000.
Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000.
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