Today, Cedar Park Company Paid $600 of Its Accounts Payable

Multiple Choice

Today, Cedar Park Company paid $600 of its accounts payable in cash. What is the effect on the accounting equation?

A) Assets, no effect; liabilities, $600 decrease; equity, $400 increase.
B) Assets, $600 increase; liabilities, no effect; equity, $600 increase.
C) Assets, $600 decrease; liabilities, $400 increase; equity, $200 decrease.
D) Assets, $600 decrease; liabilities, $600 decrease; equity, no effect.
E) No effect.