a company pays off a $600 utility bill that was previously recorded in accounts payable. which accounts are…

a company pays off a $600 utility bill that was previously recorded in accounts payable. which accounts are affected?\naccounts payable ↓ and cash ↓\ncash ↑ and utilities expense ↓\nutilities expense ↑ and accounts payable ↑\nowner’s equity ↑ and cash ↓

a company pays off a $600 utility bill that was previously recorded in accounts payable. which accounts are affected?\naccounts payable ↓ and cash ↓\ncash ↑ and utilities expense ↓\nutilities expense ↑ and accounts payable ↑\nowner’s equity ↑ and cash ↓

Answer

Brief Explanations:

When the company pays off the utility bill previously recorded in Accounts Payable, it reduces the liability (Accounts Payable) and the asset (Cash) used for payment. The Utilities Expense was already recognized when the bill was initially recorded.

Answer:

Accounts Payable and Cash are affected. So the correct option is: Accounts Payable and Cash.