Venus,IncPaid $5,000 on Accounts Payable

question 82

Multiple Choice

Venus,Inc.paid $5,000 on accounts payable.How does this transaction affect the accounting equation of Venus?

• A)assets decrease by $5,000 and equity increases by $5,000
• B)assets decrease by $5,000 and liabilities decrease by $5,000
• C)assets increase by $5,000 and equity decreases by $5,000
• D)assets increase by $5,000 and liabilities increase by $5,000

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Definitions:

Current Liabilities

Short-term financial obligations that are due within one year or within a normal operational cycle.

Accrued Expenses

Expenses that have occurred but have not yet been paid or recorded in the company's ledger.

Unearned Service Revenue

Income received by a company for services that have not yet been performed, considered a liability until the service is provided.

Service Revenue

Income earned by a company for the services it provides to its customers.