Do you know what the answer would be to this?
Photometer Company paid off $20,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?





Assets, $20,000 increase; liabilities, no effect; equity, $20,000 increase.





Assets, no effect; liabilities, $20,000 decrease; equity, $20,000 increase.





Assets, $20,000 decrease; liabilities, $20,000 decrease; equity, no effect.





Assets, $20,000 decrease; liabilities, $20,000 increase; equity, no effect.





Assets, $20,000 decrease; liabilities, no effect; equity $20,000 decrease.