Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 15 - No. 11)
What effect does a cash payment to a supplier have on the accounting equation?
Assets and liabilities increase.
Assets and liabilities decrease.
Assets increase and equity increases.
Assets decrease and equity decreases.
Explanation
Cash (an asset) is reduced, and accounts payable (a liability) is reduced.
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