$$\begin{array} { | l | l | c | l | l | l | }
\hline \text { March } & 10 & \text { Accounts Payable } & & 800 & \
\hline & & \text { Cash } & & & 800 \
\hline & & \text { Paid creditors on account. } & & & \
\hline
\end{array}$$ What effects does this journal entry have on the accounts?
A) decrease Accounts Payable, increase Cash
B) increase Cash, decrease Accounts Payable
C) increase Accounts Payable, increase Cash
D) decrease Accounts Payable, decrease Cash

Question

$$\begin{array} { | l | l | c | l | l | l | } 
\hline \text { March } & 10 & \text { Accounts Payable } & & 800 & \
\hline & & \text { Cash } & & & 800 \
\hline & & \text { Paid creditors on account. } & & & \
\hline
\end{array}$$ What effects does this journal entry have on the accounts?
A) decrease Accounts Payable, increase Cash
B) increase Cash, decrease Accounts Payable
C) increase Accounts Payable, increase Cash
D) decrease Accounts Payable, decrease Cash

Quizplus · Accepted Answer

The journal entry decreases Accounts Payable because the liability is being paid off, and it decreases Cash because cash is being used to pay the creditors.

What Effects Does This Journal Entry Have on the Accounts