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A Business Paid $5,800 to a Creditor in Payment of an Amount

Question 91

Multiple Choice

A business paid $5,800 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to


A) increase one asset, decrease another asset.
B) increase an asset, increase a liability.
C) decrease an asset, decrease a liability.
D) increase an asset, increase owner's equity.

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