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If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity?  A.  B.  C.  D.  Group of answer choices Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change. There would be no effect on the accounts because the accounts are affected by the same amount. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000.

If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity?  A.  B.  C.  D.  Group of answer choices Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change. There would be no effect on the accounts because the accounts are affected by the same amount. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000. Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000.

Financial Reporting, Financial Statement Analysis and Valuation
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter5: Risk Analysis
Section: Chapter Questions
Problem 5QE
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If a company paid $38,000 of its accounts payable in cash, what was the effect on the assets, liabilities, and equity? 
A. 
B. 
C. 
D. 

Group of answer choices
Assets would decrease $38,000, liabilities would decrease $38,000, and equity would not change.
There would be no effect on the accounts because the accounts are affected by the same amount.
Assets would decrease $38,000, liabilities would decrease $38,000, and equity would increase $38,000.
Assets would decrease $38,000, liabilities would decrease $38,000, and equity would decrease $38,000.
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