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Saddleback company paid off $30,000 of its accounts payable in cash. what would be the effects of this transaction on the accounting equation?

Respuesta :

angelamerancin
Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect.
david8644

Answer:

Liabilities and assets decrease

Explanation:

Since assets are in the equation the money that you actually have, then it has to decrease because you are paying it, and getting rid of it, and since liabilities is the money or values that you owe, it will also decrease, since you are paying off your debts, so both liabilities and assets will decrease.

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