The payment of Accounts Payable results in a(n)
A)decrease in both liabilities and assets.
B)decrease in liabilities and increase in assets.
C)decrease in liabilities and increase in stockholders' equity.
D)increase in liabilities and decrease in stockholders' equity.

Question

Quizplus · Accepted Answer

Paying off accounts payable decreases liabilities (because you're reducing what you owe) and also decreases assets (because you're using cash or other assets to make the payment).

The Payment of Accounts Payable Results in A(n)