The Payment of a Portion of an Accounts Payable Will

question 43

Multiple Choice

The payment of a portion of an accounts payable will

• A)not affect total assets.
• B)increase liabilities.
• C)not affect stockholders' equity.
• D)decrease net income.

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Definitions:

Majority Shareholder

An individual or entity owning more than 50% of a company's shares, giving them significant control over the company's decisions.

Close Corporation

A type of corporation characterized by a small number of shareholders, no public market for its shares, and often operated similarly to a partnership.

Transferability

The ability of an asset to be transferred or made over from one party to another.

Close Corporation

A privately held company characterized by a small number of shareholders with no public market for its shares.