Photometer Company Paid Off $30,000 of Its Accounts Payable in Cash

question 159

Multiple Choice

Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

• A) Assets, $30,000 increase; liabilities, no effect; equity, $30,000 increase.
• B) Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect.
• C) Assets, $30,000 decrease; liabilities, $30,000 increase; equity, no effect.
• D) Assets, no effect; liabilities, $30,000 decrease; equity, $30,000 increase.
• E) Assets, $30,000 decrease; liabilities, no effect; equity $30,000 decrease.

---

Definitions:

Interval Estimate

An estimate of a population parameter that is given as a range of values, usually defined by two numbers forming an interval believed to contain the parameter.

Interval Estimate

An estimate of a population parameter given as a range (interval) of values, defined by upper and lower bounds.

Sample Size

The number of observations or datapoints collected in a sample, which is a subset of the population being studied.

Population Mean

The average or central value of all the numbers in a population.