Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 16 - No. 26)
What impact does a payment to a supplier for a purchase on credit have on the balance sheet?
Assets increase, liabilities decrease.
Assets decrease, liabilities decrease.
Assets increase, equity increases.
Assets decrease, equity increases.
Explanation
The cash account (an asset) decreases, and the Accounts Payable (a liability) decreases.
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