Saturn, Inc

Multiple Choice

Saturn, Inc. paid $13,000 on accounts payable. How does this transaction affect the accounting equation of Saturn?

A) Assets decrease by $13,000 and equity increases by $13,000.
B) Assets decrease by $13,000 and liabilities decrease by $13,000.
C) Assets increase by $13,000 and equity decreases by $13,000.
D) Assets increase by $13,000 and liabilities increase by $13,000.