Saturn Company Paid $10,000 on Accounts Payable

Multiple Choice

Saturn Company paid $10,000 on accounts payable.How does this transaction affect the accounting equation of Saturn?

A) assets decrease by $10,000 and equity increases by $10,000
B) assets decrease by $10,000 and liabilities decrease by $10,000
C) assets increase by $10,000 and equity decreases by $10,000
D) assets increase by $10,000 and liabilities increase by $10,000