Paying for supplies previously purchased would have what effect on the accounting equation?
Liabilities decrease and stockholders' equity increases.
Assets increase and liabilities increase.
Assets decrease and stockholders' equity decreases.
Assets decrease and liabilities decrease.

Previously purchased Inventory built a liability. Now, paying this liability will decrease itself and cash as well which is an asset. There is a decrease in Liability and on the other hand the decrease in assets as well. Following will be passed to pay it.

Dr. Account Payable xxx

Cr. Cash xxx

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Paying for supplies previously purchased would have what effect on the accounting equation? Liabilities decrease and stockholders' equity increases. Assets increase and liabilities increase. Assets decrease and stockholders' equity decreases. Assets decrease and liabilities decrease.

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Paying for supplies previously purchased would have what effect on the accounting equation?
Liabilities decrease and stockholders' equity increases.
Assets increase and liabilities increase.
Assets decrease and stockholders' equity decreases.
Assets decrease and liabilities decrease.