Question

Paid off accounts payable affects which accounts

Answer 1

Solution:

Paid of Account Payable: Paid of account payable affect two accounts in the financial statements.

First - Accounts Payable is paid off it means outstanding in payable account is reduced and overall current liabilities is reduced

Second – Account payable is made through cash it means cash balance is reduced from the same amount. So it reduced the cash and current assets of the company.

As per above explanation we came to know that paid off account payable is affecting the two accounts. One is account payable and second is cash account.