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:

Buyer

An individual or entity that purchases goods or services for personal use or for the use of an organization.

Disagreement Signals

Indicators or cues, often nonverbal or verbal, that suggest a difference of opinion or conflict between individuals.

Planned Presentation

A carefully organized and prepared sales pitch intended to address the needs and concerns of a potential customer.

Buyer

An individual or entity that purchases goods or services for personal use, commercial use, or resale.