Venus Inc. paid $5,000 for accounts payable. How does thistransaction affect the accounting equation of Venus?A. Assets decrease and Liabilities decrease.B. Assets increase and Liabilities increase.C. Assets decrease and equity increase.D. Assets increase and equity decrease.

Step 1:The amount paid to accounts payable results in a decrease in assets as cash decreases; it…

Answered: Venus Inc. paid $5,000 for accounts…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 26MC: What is the impact on the accounting equation when an accounts receivable is collected? A. both...

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Venus Inc. paid $5,000 for accounts payable. How does this transaction affect the accounting equation of Venus? A. Assets decrease and Liabilities decrease. B. Assets increase and Liabilities increase. C. Assets decrease and equity increase. D. Assets increase and equity decrease.