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Determine How Each of the Following Transactions Affect Liabilities

Question 38

Essay

Determine how each of the following transactions affect liabilities.
A. Payment to employees for wages previously accrued
B. Accrue interest of $200 on a note payable
C. Payment of $200 to bank for interest accrued on a note payable

Correct Answer:

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A. This transaction reduces current liab...

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