English

Question

When a $100 liability is paid with cash, assets decrease by $100. What change is

made to the liability account?

• Decrease by the same amount

• No change

© Decrease by double the amount

• Increase by the same amount

13

Time El.

Attempt c

3 Minut

Answer

No change

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When a liability is paid with cash, the liability account is not affected. The cash account is decreased by $100, and the liability account remains unchanged...