What is the effect on the accounting equation when the business buys a car for $25,000, paying a cash deposit of $5,000 and promising to pay the balance within 60 days?

Group of answer choices

Increase asset vehicle by $25,000; decrease asset Cash by $5,000; increase liability accounts payable by $20,000.

Increase asset vehicle by $20,000; increase liability accounts payable by $20,000.

Increase asset vehicle by $5,000; decrease asset bank by $5,000.

None of the above.