If a Company Paid $38,000 of Its Accounts Payable in Cash

question 178

Multiple Choice

If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity?

• A) Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000.
• B) Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000.
• C) Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change.
• D) There would be no effect on the accounts because the accounts are affected by the same amount.
• E) None of these.

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Definitions:

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A serious bacterial infection that affects the mucous membranes of the throat and nose and can cause breathing difficulties, heart failure, and even death.

Venereal Disease

Another term for sexually transmitted diseases (STDs), highlighting diseases transmitted through sexual intercourse.

Chlamydiae

A group of bacteria that can cause various infections in humans and animals, often sexually transmitted.

Eye Disease

Any disorder or condition affecting the eyes, potentially impairing vision or causing eye discomfort and problems.