Photometer Company Paid Off $30,000 of Its Accounts Payable in Cash

Multiple Choice

Photometer Company paid off $30,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

A) Assets, $30,000 increase; liabilities, no effect; equity, $30,000 increase.
B) Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect.
C) Assets, $30,000 decrease; liabilities, $30,000 increase; equity, no effect.
D) Assets, no effect; liabilities, $30,000 decrease; equity, $30,000 increase.
E) Assets, $30,000 decrease; liabilities, no effect; equity $30,000 decrease.