$7 000 account payable is paid by the business. How is the accounting equation affected?

Question 2 Answer

A.

Assets decrease $7 000; owners' equity increases $7 000.

B.

Assets increase $7 000; liabilities increase $7 000.

C.

Assets decrease $7 000; liabilities decrease $7 000.

D.

Assets increase $7 000; owners' equity decreases $7 000.