Question

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. When a company makes a payment towards its Accounts Payable, what is the effect on the accounting equation? a) Assets decrease and liabilities decrease b) Assets increase and liabilities increase c) Assets decrease and liabilities increase d) Assets decrease and stockholders' equity decreases e) Assets increase and stockholders' equity decreases . According to Accounting Across the Organization, how do organizations usually determine the start and end of their fiscal year? a) Public companies are required to match the calendar year while private companies often choose to match with the calendar year b) Many companies are required to match the calendar year while private companies often choose to match with the calendar year. c) Many companies to end their fiscal year during low inventory or operations d) Many companies start their fiscal year during the month they began operations e) None of the above. . According to article, Private vs Public Company: What's the Difference? Which of the following statements is true? a) Both public and Private companies are required to file their quarterly earnings with SEC. b) Private companies seek to increase profits for shareholder c) Public companies can sell stock to earn money for growth while private companies are prohibited from selling stock d) Public companies are required to file their quarterly earnings with the SEC while private companies do not need to disclose their financials. 100 000 corn

Answer 1

Question 1

Correct answer------------a) assets decrease and liabilities decrease.

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When a company pays accounts payable by cash the balance ion cash decrease as well as balance of accounts payable decrease.

The journal would be Accounts payable debit and cash credit. The accounting equation tallies itself when asset decrease and with same amount liabilities decrease.

Its needless to say cash is an asset and accounts payable is a liability.