The Effect on the Accounting Equation of the Business Paying

Multiple Choice

The effect on the accounting equation of the business paying $275 cash for mobile phone charges is:

A) a decrease in the asset cash of $275 and a decrease in the liability accounts payable of $275
B) a decrease in the asset cash of $275 and a decrease in profit and loss of $275 to record the phone expense.
C) an increase in the asset cash of $275 and a decrease in profit and loss of $275 to record the phone expense.
D) a decrease in the asset cash of $275 and an increase in profit and loss of $275 to record the phone expense.