Question: A business settles a liability by making a payment with cash. How does paying this liability affect the accounting equation? Your answer: O Assets decrease;

A business settles a liability by making a payment with cash.

A business settles a liability by making a payment with cash. How does paying this liability affect the accounting equation? Your answer: O Assets decrease; liabilities decrease O Liabilities decrease; owner's equity increases O Assets increase; liabilities increase O Assets increase; liabilities decrease

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