Saddleback Company paid off $45,000 of its accounts payable in cash. What would be the effects...

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Finance

Saddleback Company paid off $45,000 of its accounts payable incash. What would be the effects of this transaction on theaccounting equation?
a.Assets, $45,000 increase; equity, $45,000 increase.
b.Assets, $45,000 decrease; liabilities, $45,000 decrease.
c.Assets, $45,000 decrease; liabilities, $45,000 increase.
d.Liabilities, $45,000 decrease; equity, $45,000 increase.
e.Assets, $45,000 decrease; equity $45,000 decrease.

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Money owed to suppliers of an organization is referred to as accounts payable Accounts payable represent liability of a company As Saddleback company has paid off its accounts See Answer

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Saddleback Company paid off $45,000 of its accounts payable incash. What would be the effects of this transaction on theaccounting equation?a.Assets, $45,000 increase; equity, $45,000 increase.b.Assets, $45,000 decrease; liabilities, $45,000 decrease.c.Assets, $45,000 decrease; liabilities, $45,000 increase.d.Liabilities, $45,000 decrease; equity, $45,000 increase.e.Assets, $45,000 decrease; equity $45,000 decrease.