Question:
When a payment is made on an account payable:
a. Assets and stockholders' equity decrease.
b. Assets and liabilities decrease.
c. Liabilities and revenues decrease.
d. Assets and expenses decrease.
Balance Sheet
Balance sheet is a written and legalized document containing a detailed explanation of all the assets, liabilities and equity of an organization. It is prepared only after evaluating the net profit or loss of a company for a particular year because this needs to be adjusted in the capital account which is recorded in the balance sheet.
Answer and Explanation:1
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The correct option is (b) Assets and liabilities decrease.
If a company has acquired something on credit or on account then they are required to make...
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