An Employee Worked for a Small Business During the Current

question 68

Multiple Choice

An employee worked for a small business during the current month but he will not be paid until the next month.If the business uses accrual accounting, what would be the effect on the accounting equation in the current month?

• A)Assets decrease and liabilities decrease.
• B)Liabilities increase and owners' equity increases.
• C)Liabilities increase and owners' equity decreases.
• D)There is no effect at this time.

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Definitions:

Pineal Gland

A small endocrine gland in the brain that produces the hormone melatonin, regulating sleep patterns.

Hypothalamus

A region of the brain responsible for controlling many autonomic functions such as temperature regulation, hunger, and thirst, as well as linking the nervous and endocrine systems.

Mammillary Bodies

Small rounded bodies at the base of the brain, part of the limbic system, involved in memory formation and recollection.

Hypothalamic Function

The roles performed by the hypothalamus, which include regulating temperature, thirst, hunger, sleep, circadian rhythm, and releasing hormones.