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A Business Paid $7,000 to a Creditor in Payment of an Amount

Question 93

Multiple Choice

A business paid $7,000 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) decrease an asset, decrease a liability
C) increase an asset, increase a liability
D) increase an asset, increase stockholders' equity

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