Saddleback Company Paid Off $30,000 of Its Accounts Payable in Cash

question 177

Multiple Choice

Saddleback Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

• A) Assets, $30,000 decrease; liabilities, $30,000 increase.
• B) Assets, $30,000 decrease; equity $30,000 decrease.
• C) Assets, $30,000 increase; equity, $30,000 increase.
• D) Liabilities, $30,000 decrease; equity, $30,000 increase.
• E) Assets, $30,000 decrease; liabilities, $30,000 decrease.