The Payment of an Account Payable

question 54

Multiple Choice

The payment of an account payable

• A)decreases total assets.
• B)increases total assets.
• C)has no effect on total assets.
• D)increases total liabilities.

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Definitions:

Cash Dividend

A payment made by a company out of its profits to its shareholders, usually in the form of cash.

Bonds Payable

Long-term liabilities represented by bonds that a company has issued, which it is obligated to pay back at a future date along with interest payments.

Financing Activities

Transactions related to a company's raising and repaying of funds, including issuing debt, obtaining loans, and returning capital to shareholders.

Cash Dividend

A portion of a company's earnings that is paid to shareholders, typically in cash, as a return on their investment.