Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 23 - No. 35)
What impact does the payment of a supplier using cash have on the accounting equation?
Increases assets and decreases liabilities.
Decreases assets and decreases liabilities.
Increases assets and increases liabilities.
Decreases assets and increases liabilities.
Explanation
Paying a supplier decreases cash (an asset) and decreases accounts payable (a liability).
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