How Does Paying a Liability in Cash Affect the Accounting

question 193

Multiple Choice

How does paying a liability in cash affect the accounting equation?

• A) assets increase; liabilities decrease
• B) assets increase; liabilities increase
• C) assets decrease; liabilities decrease
• D) liabilities decrease; stockholders' equity increases

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Definitions:

Reputational Objectives

Designed to change perceptions and rebuild reputations or trust after a crisis.

Strategic Plans

Detailed documents that outline an organization's goals, strategies for achieving them, and the resources required.

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A strategic process of setting the future direction and goals of an organization or project.

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