Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 11 - No. 23)

What is the impact of a cash payment on the accounting equation?
Increases assets and equity
Decreases assets and liabilities
Decreases assets and decreases equity
Increases assets and increases liabilities

Explanation

A cash payment reduces cash (an asset) and reduces the amount of equity or liabilities.

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