Respuesta :
Both assets and either liabilities or stockholders' equity are decreased in a payment to creditors' transaction.
What is creditors' payment?
A payment to creditors means that the creditors such as suppliers to the company are paid for the goods or services supplied to the company on credit basis
A payment to creditors' transaction would decrease both assets and liabilities.
The rationale is that the cash used in making such payments would decrease assets because cash is an asset of the company and liability's balance would also decrease because paying up means that the total amount owed to creditors has reduced by the amount of cash paid
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