Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 38 - No. 44)
What is the effect on the accounting equation if a business pays its suppliers with cash?
Increases assets and decreases liabilities.
Decreases assets and increases liabilities.
Increases assets and increases liabilities.
Decreases assets and decreases liabilities.
Explanation
Paying a supplier decreases cash (asset) and also decreases accounts payable (a liability).
Comments (0)
