If a company received $20,000 as a payment on accounts receivable and used the money to pay $20,000 on accounts payable, then: CIRCLE ONE:
If a company received $20,000 as a payment on accounts receivable and used the money to pay $20,000 on accounts payable, then: CIRCLE ONE:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![If a company received $20,000 as a payment on accounts receivable and used the money to pay $20,000 on accounts
payable, then: CIRCLE ONE:
૧. both assets and shareholders' equity would decrease by $20,000
b. both assets and liabilities would decrease by $20,000
C. assets would increase by $20,000 while liabilities would decrease by $20,000
d. liabilities would decrease by $20,000 while shareholders' equity would increase by $20,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4a8023c3-c690-4e2c-b9f1-72fb581950b4%2Fb1734022-6aca-41e5-b78b-763fcdaf5da8%2Fkqzr3m_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If a company received $20,000 as a payment on accounts receivable and used the money to pay $20,000 on accounts
payable, then: CIRCLE ONE:
૧. both assets and shareholders' equity would decrease by $20,000
b. both assets and liabilities would decrease by $20,000
C. assets would increase by $20,000 while liabilities would decrease by $20,000
d. liabilities would decrease by $20,000 while shareholders' equity would increase by $20,000
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