Question

The payment of a liability will –
(A) Increase both assets and liabilities
(B) Increase assets and decrease liabilities
(c) Decrease assets and increase liabilities
(D) Decrease assets and decrease liabilities

Answer 1

Answer: I think A But clearly i can explain below :-)

Explanation: Payment of a liability

Liability is an obligation of the business to pay during the course of time. Liability can be current or non-current in nature. Current liabilities are those which needs to get paid in one year or less while non-current can extend more than one year.