The Roy's Downtown Diner Received a Bill of $400 from the Emeril

question 227

Multiple Choice

The Roy's Downtown Diner received a bill of $400 from the Emeril Advertising Agency. The owner, Roy James, is postponing payment of the bill until a later date. The effect on specific items in the basic accounting equation is

• A) a decrease in Cash and an increase in Accounts Payable.
• B) a decrease in Cash and an increase in Retained Earnings.
• C) an increase in Accounts Payable and a decrease in Retained Earnings.
• D) a decrease in Accounts Payable and an increase in Retained Earnings.

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Definitions:

Prefrontal Cortex

The front part of the frontal lobe responsible for complex cognitive behavior, decision making, and moderating social behavior.

Amygdala

A tiny brain structure that registers emotions, particularly fear and anxiety.

Growth Spurt

The relatively sudden and rapid physical growth that occurs during puberty. Each body part increases in size on a schedule: Weight usually precedes height, and growth of the limbs precedes growth of the torso.