When a payment is made on an account payable:
A)Assets and stockholders' equity decrease.
B)Assets and liabilities decrease.
C)Liabilities and revenues decrease.

Question

Quizplus · Accepted Answer

When a payment is made on an account payable, it reduces the liability (account payable) and the corresponding asset (cash). Therefore, both assets and liabilities decrease. There is no impact on stockholders' equity or revenues.

When a Payment Is Made on an Account Payable