Saddleback Company paid off $45,000 of its accounts payable in cash. What would be the effects of
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Saddleback Company paid off $45,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?
a. Assets, $45,000 increase; equity, $45,000 increase.
b. Assets, $45,000 decrease; liabilities, $45,000 decrease.
c. Assets, $45,000 decrease; liabilities, $45,000 increase.
d. Liabilities, $45,000 decrease; equity, $45,000 increase.
e. Assets, $45,000 decrease; equity $45,000 decrease.
Expert Answer:
Money owed to suppliers of an organization is referred to as accounts payable Accounts p... View the full answer
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