What is the effect on a firm for making a payment of N10,000 to creditor? its liabilities
a
decrease and its assets decrease
b
increase and its assets decrease
c
decrease and its asseys increase
d
increase and its assets increase
Explanation
Correct Option
dNo explanation available
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zubydsniper
10 years ago
The selected answer is wrong:
When there is a payment to a creditor it implys that if been own the sum of 20000 but paid 10000,there will be a decrease in the amount own to the creditor and since money left your hands it shows that u have a decrease in cash of 10000 paid to the creditor...there A is correct
