Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation

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Lets understand the basics.

Accounting equation is also known as balance sheet equation. It means that, total assets are always equal to total of liability and equity. In other words, all the assets are generated using equity and liability. 

Total assets = Total equity + Total liabilities 

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