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:

Procedural

Related to or involving a prescribed series of steps or methods to achieve a specific end.

System-2 Thinking

Reflective critical thinking that is useful for judgments in unfamiliar situations, for processing abstract concepts, and for deliberating when there is time for planning and more comprehensive consideration.

Comprehensive Consideration

A thorough and all-encompassing approach to analyzing or thinking about a problem, situation, or decision.

Reflective Critical

The process of critically assessing one's beliefs, judgments, and practices through introspection and consideration of external inputs.