Grey Company Received a Bill of $2,800 from the Sloan

Multiple Choice

Grey Company received a bill of $2,800 from the Sloan Advertising Agency. The owner is postponing payment of the bill until a later date. The effect on the basic accounting equation is

A) a decrease in Cash and an increase in Accounts Payable.
B) a decrease in Cash and an increase in Owner's Capital.
C) an increase in Accounts Payable and a decrease in Owner's Capital.
D) a decrease in Accounts Payable and an increase in Owner's Capital.