Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 41 - No. 28)
What is the impact on the financial position if the business pays for the credit purchase from Spire Ltd?
Assets decrease, Liabilities increase
Assets increase, Liabilities increase
Assets decrease, Liabilities decrease
Assets increase, Liabilities decrease
Explanation
Payment decreases cash (asset) and decreases the amount owed to the supplier (liability).
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