An adjusting entry recorded March salary expense that will be paid in April. Which statement best describes the effect of this adjusting entry on the company's accounting equation at the end of March?

a. Assets are not affected, liabilities are decreased, and shareholders' equity is decreased.

b. Assets are decreased, liabilities are increased, and shareholders' equity is decreased.

c. Assets are not affected, liabilities are increased, and shareholders' equity is decreased.

d. Assets are decreased, liabilities are not affected, and shareholders' equity is decreased.