A.increase both assets and liabilities
B.increase assets and decrease liabilities
C.decrease both assets and liabilities
D.decrease assets and increase liabilities
Decrease assets, decrease liabilities. Accounts payable are what the business owes (liabilities). By paying off accounts payable, the liabilities are decreasing (they owe less) and the assets are also decreasing (because they use assets/cash to pay off the liabilities, so they have less now).
