Southern Company paid off $33,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

Question

Accepted Answer

Assets decrease $33,000; liabilities decrease $33,000.

Answer

Assets decrease $33,000; liabilities increase $33,000.

Answer

Assets increase $33,000; equity increases $33,000.

Answer

Assets decrease $33,000; equity decreases $33,000.

Answer

Liabilities decrease $33,000; equity increases $33,000.

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