What Would Be the Effect on December's Statement of Earnings

question 74

Multiple Choice

What would be the effect on December's statement of earnings of a utility bill received on December 27, 2013 but which will not be paid until January 10, 2014?

• A) Profit will be decreased when we pay the bill in January
• B) No expense will be recognized until the bill is paid in January
• C) We would cause an increase in profit by recording the expense in December
• D) Recording the expense in December when it is incurred will increase expenses

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Definitions:

Blood Transfusion

The process of transferring blood or blood components from one person (donor) into the bloodstream of another person (recipient) to replace lost components of the blood.

Notify Physician

The act of informing a doctor about a patient's condition or changes in their health status.

Vital Signs

Clinical measurements that indicate the state of a patient’s essential body functions, including temperature, pulse, respiration rate, and blood pressure.

Blood Transfusion Reaction

An adverse response by the body to the transfusion of blood products, which can range from mild allergic reactions to severe complications.