For each item numbered below, select the appropriate effect on liabilities listed in a through e that each transaction describes.You may use each letter more than once or not at all.In some cases, two effects are correct.
-Paid accounts payable.
A) Decrease current liabilities
B) Increase current liabilities
C) No effect on recorded current liabilities
D) Accrued contingent liability
E) Contingent liability disclosed in the notes only

Question

Quizplus · Accepted Answer

Paying accounts payable decreases current liabilities because it settles an obligation that the company owes, reducing the amount recorded as owed in the current liabilities section of the balance sheet.

For Each Item Numbered Below, Select the Appropriate Effect on Liabilities