Which of the Following Correctly Describes the Following Adjusting Journal $\quad$

question 28

Multiple Choice

Which of the following correctly describes the following adjusting journal entry? Utilities expense
$\quad$ Utilities payable

• A) Total assets decrease and net income decreases.
• B) Stockholders' equity decreases and liabilities increase.
• C)The transaction is an example of a deferral.
• D)Net income decreases and stockholders' equity does not change.

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