Mark paid $800 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 (the amount owed).

Mark Paid $800 Cash to Partially Reduce the Amount Owed