Outstanding amount you owe for raw materials


Question: If you pay a vendor/supplier for an outstanding amount you owe for raw materials you purchased 30 days ago, the following Balance Sheet accounts for your company are impacted in the following manner. Hint: Remember the Balance Sheet Formula. O Accounts Payables decreases, Cash decreases, and Owners Equity remains the same. O Accounts Payables decreases, Cash increases, and Owners Equity remains the same O Accounts Receivable decreases, Cash decreases, and Owners Equity remains the same Accounts Payables increases, Cash decreases, and Owners Equity Increases

 

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Accounting Basics: Outstanding amount you owe for raw materials
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