When a Payment Is Made on an Account Payable

question 146

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:

Composite Structural Configuration

A method of organizing a company or system that combines different structures to maximize efficiency and effectiveness.

Professional Bureaucracy

An organizational structure where power is held by professionals with specialized knowledge rather than through formal managerial positions.

Standardization

The process of implementing and developing technical standards to ensure consistency, safety, and efficiency across products, services, and procedures.

Coordination

The organization of the different elements of a complex body or activity so as to enable them to work together effectively.