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Saddleback Company paid off $42,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation? Multiple Choice

image text in transcribed Saddleback Company paid off $42,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation? Multiple Choice Assets increase $42,000; equity increases $42,000. Assets decrease $42,000; liabilities decrease $42,000. Assets decrease $42,000; liabilities increase $42,000. Liabilities decrease $42,000; equity increases $42,000

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