If a Company Paid Off $100,000 of Its Accounts Payable

Multiple Choice

If a company paid off $100,000 of its accounts payable, the effect of this transaction as reflected in the accounting equation are:

A) Total assets and total liabilities decrease
B) Total assets and total liabilities increase
C) Both total assets, total liabilities and stockholders' equity are unchanged
D) Total assets decrease and total liabilities increase