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. Liabilities, $30,000 decrease; equity, $30,000 increase.
B. Assets, $30,000 decrease; equity $30,000 decrease.
C. Assets, $30,000 decrease; liabilities, $30,000 decrease.
D. Assets, $30,000 decrease; liabilities, $30,000 increase.
E. Assets, $30,000 increase; equity, $30,000 increase.
Answer: C
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