Sunland Bite Diner received a bill of $710 from the Culver Advertising Agency. The owner, K. T. Lang, is postponing payment of the bill until a later date. The effect on specific items in the basic accounting equation is

a decrease in assets and an increase in owners equity.

decrease in assets and an increase in owners equity.

a decrease in liabilities and an increase in owners equity.

an increase in liabilities and a decrease in owners equity.