During 2014, Sensa Corporation Incurred Operating Expenses Amounting to $100,000

question 72

Multiple Choice

During 2014, Sensa Corporation incurred operating expenses amounting to $100,000 of which $75,000 was paid in cash; the balance will be paid during 2015. Which of the following is correct for the 2014 year-end balance sheet?

• A) Stockholders' equity decreases $75,000 and assets decrease $75,000.
• B) Assets decrease $100,000 and stockholders' equity decreases $100,000.
• C)Assets decrease $100,000, liabilities increase $25,000, and stockholders' equity decreases $100,000.
• D)Stockholders' equity decreases $100,000, assets decrease $75,000, and liabilities increase $25,000.