Cash was paid by XYZ to creditors.Which of the following entries for XYZ correctly records this transaction?

Name: Cash was paid by XYZ to creditors.Which of the following entries for XYZ correctly records this transaction?
Brand: Quizplus
Rating: 5.0 (39 reviews)

Question

Quizplus · Accepted Answer

When XYZ pays its creditors, the accounts payable (liability) is reduced, and cash (asset) is reduced. Therefore, the correct entry would be to debit accounts payable and credit cash.

Cash Was Paid by XYZ to Creditors