Payment on a Portion of Accounts Payable Will

question 31

Multiple Choice

Payment on a portion of Accounts Payable will

• A) not affect owner's equity.
• B) decrease net income.
• C) increase total liabilities.
• D) not affect total assets.

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Definitions:

Accounting Process

A systematic series of steps to collect, record, and analyze financial transactions of a business for reporting and tax purposes.

Transactions

Economic activities or events that change the financial position of a company and can be measured in monetary terms.

Business Expense

Expenditures incurred during the operation of a business, considered necessary, ordinary, and customary for conducting business activities.

Income Statement

A report detailing a company's financial activities, including income, expenditures, and profit, over a certain period.