Saturn Company Paid $10,000 on Accounts Payable

question 193

Multiple Choice

Saturn Company paid $10,000 on accounts payable.How does this transaction affect the accounting equation of Saturn?

• A) assets decrease by $10,000 and equity increases by $10,000
• B) assets decrease by $10,000 and liabilities decrease by $10,000
• C) assets increase by $10,000 and equity decreases by $10,000
• D) assets increase by $10,000 and liabilities increase by $10,000

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Definitions:

Civil Liberties

Individual rights protected by law from unjust governmental or other interference.

Waldron

A scholar or theorist known for significant contributions to legal and political philosophy, possibly referencing Jeremy Waldron's work on law, rights, and justice.

Justice

The principle of fairness where each individual receives what they are due or deserved, in accordance with moral and legal standards.

Legitimizing

The process of making something acceptable, valid, or legitimate through official, legal, or recognized means.