A Bill Is Received for Electric Service;the Charge for the Electricity

question 29

Multiple Choice

A bill is received for electric service;the charge for the electricity is recorded,but payment will be made later.For this transaction,identify the effect on the accounting equation.

• A)Assets increase and liabilities increase.
• B)Assets increase and stockholders' equity increases.
• C)Liabilities increase and stockholders' equity decreases.
• D)Liabilities decrease and assets decrease.

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Definitions:

Limbic System

A complex system of nerves and networks in the brain, involved in basic emotions and drives.

Motor Cortex

An area of the cerebral cortex that plays a crucial role in planning, controlling, and carrying out voluntary movements.

Prefrontal Cortex

The prefrontal cortex is a region of the brain associated with decision-making, cognitive behavior, personality expression, and moderating social behaviour.

Stage 1 Sleep

The initial phase of the sleep cycle, characterized by light sleep and ease of awakening.