Mark paid $500 cash to partially reduce the amount owed for equipment that was previously bought on account. This transaction would
A) increase both assets and liabilities.
B) increase assets and decrease liabilities.
C) decrease both assets and liabilities.
D) decrease assets and increase liabilities.

Question

Quizplus · Accepted Answer

Paying cash to reduce an amount owed decreases assets (cash) and decreases liabilities (amount owed).

Mark Paid $500 Cash to Partially Reduce the Amount Owed