If a Company Paid $38,000 of Its Accounts Payable in Cash,what

question 108

Multiple Choice

If a company paid $38,000 of its accounts payable in cash,what was the effect on the accounting equation?

• A)Assets would decrease $38,000,liabilities would decrease $38,000,and equity would decrease $38,000.
• B)Assets would decrease $38,000,liabilities would decrease $38,000,and equity would increase $38,000.
• C)Assets would decrease $38,000 and liabilities would decrease $38,000.
• D)There would be no effect on the accounts because the accounts are affected by the same amount.
• E)Assets would increase $38,000 and liabilities would decrease $38,000.

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