What is the effect on a firm for making a payment of N10,000 to creditor? its liabilities

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

waec 2001 accounting

The correct answer is D. increase and its assets increase

No explanation given

Previous question Next question