What Does the Payment of Accounts Payable Result In

question 99

Multiple Choice

What does the payment of accounts payable result in?

• A) a decrease in both liabilities and assets
• B) a decrease in liabilities and an increase in assets
• C) a decrease in liabilities and an increase in shareholders' equity
• D) an increase in liabilities and a decrease in shareholders' equity

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Effects On Other Parts

The impact that changes or actions in one segment or component have on other segments or components within a system or organization.

Proceeds From Sales

The total amount of money received by a company from selling goods, services, or assets.

Opportunity Costs

The cost of foregoing the next best alternative when making a decision. It represents the benefits an individual, investor, or business misses out on when choosing one alternative over another.