Which entry records payment of an accounts payable using cash?

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Multiple Choice

Which entry records payment of an accounts payable using cash?

Explanation:
When a company pays an accounts payable with cash, the liability is reduced and cash decreases. In double-entry accounting, a decrease in a liability is recorded with a debit, and a decrease in an asset is recorded with a credit. So the correct entry debits Accounts Payable and credits Cash. This reflects the outflow of cash and the settlement of what the company owes. The other options would either increase cash or affect an expense or revenue, which does not represent paying down a liability.

When a company pays an accounts payable with cash, the liability is reduced and cash decreases. In double-entry accounting, a decrease in a liability is recorded with a debit, and a decrease in an asset is recorded with a credit. So the correct entry debits Accounts Payable and credits Cash. This reflects the outflow of cash and the settlement of what the company owes. The other options would either increase cash or affect an expense or revenue, which does not represent paying down a liability.

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