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A Business Paid $5,000 to a Creditor in Payment of an Amount

Question 100

Multiple Choice

A business paid $5,000 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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