The payment of accounts payable 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 off accounts payable decreases the cash asset (or whichever asset is used for the payment) and decreases the accounts payable liability, thus decreasing both assets and liabilities.

The Payment of Accounts Payable Would