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Kipish [7]
3 years ago
10

If an expense is paid with cash assets will decrease. retained earnings will increase. liabilities will increase. expenses will

decrease.
Social Studies
1 answer:
irakobra [83]3 years ago
3 0

<u>Answer: </u>

If an expense is paid with cash the assets will decrease.

<u>Explanation: </u>

  • As long as cash is termed as a current asset, its flowing out of the business would be considered as a decrease in the assets.
  • Though it is a conventional practice to pay for expenses in cash, it has to be taken into consideration that the assets of the business are decreasing with such payments done.
  • But as cash is a highly fluid asset, its inflow and outflow do not bother the business much.

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