When a Payment Is Made on an Account Payable

question 102

Multiple Choice

When a payment is made on an account payable:

• A)Assets and stockholders' equity decrease.
• B)Assets and liabilities decrease.
• C)Liabilities and revenues decrease.
• D)Assets and expenses decrease.

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Definitions:

Tariffs

Taxes imposed by a government on imported or exported goods, usually to protect domestic industries or to generate revenue.

Foreign Products

Goods or services produced in one country and sold in another, outside of their country of origin.

Duties

Taxes imposed on the import and export of goods.

Protective Tariff

A tax imposed on imports to protect domestic industries from foreign competition by making imported goods more expensive.