A payment of a portion of accounts payable will
A) decrease net earnings.
B) not affect total assets.
C) increase liabilities.
D) not affect shareholders' equity.

Name: A payment of a portion of accounts payable will A) decrease net earnings. B) not affect total assets. C) increase liabilities. D) not affect shareholders' equity.
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Question

Quizplus · Accepted Answer

Paying off accounts payable reduces liabilities and cash (an asset) equally, leaving shareholders' equity unchanged.

A Payment of a Portion of Accounts Payable Will