Received utility bill to be paid next month
A)Increase assets, increase liabilities
B)Increase liabilities, decrease stockholders' equity
C)Increase assets, increase stockholders' equity
D)No effect
E)Decrease assets, decrease liabilities
F)Decrease assets, decrease stockholders' equity

Question

vanshika Chopra · Accepted Answer

Final Answer : b, Explanation :  Receiving a utility bill to be paid next month would increase liabilities (as the company owes money to the utility company) and decrease owner's equity (as the company's assets are being used to pay for expenses).

Received utility bill to be paid next month
A)Increase assets, increase liabilities
B)Increase liabilities, decrease stockholders' equity
C)Increase assets, increase stockholders' equity
D)No effect
E)Decrease assets, decrease liabilities
F)Decrease assets, decrease stockholders' equity

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Learning Objectives

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Received utility bill to be paid next monthA)Increase assets, increase liabilitiesB)Increase liabilities, decrease stockholders' equityC)Increase assets, increase stockholders' equityD)No effectE)Decrease assets, decrease liabilitiesF)Decrease assets, decrease stockholders' equity

Definitions

Learning Objectives

Learning Objectives

Related questions

Received utility bill to be paid next month
A)Increase assets, increase liabilities
B)Increase liabilities, decrease stockholders' equity
C)Increase assets, increase stockholders' equity
D)No effect
E)Decrease assets, decrease liabilities
F)Decrease assets, decrease stockholders' equity