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

question 66

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 R. James, Capital.
• C) an increase in Accounts Payable and a decrease in R. James, Capital.
• D) a decrease in Accounts Payable and an increase in R. James, Capital.

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Definitions:

Aerobic Exercise

Physical activity that improves the efficiency of the body's cardiovascular system in absorbing and transporting oxygen.

Exposure Therapy

A psychological treatment designed to help individuals confront their fears by gradual and repeated exposure to the feared object, situation, or thought.

Mood-Stabilizing

Pertaining to drugs or therapeutic methods used to treat mood disorders by stabilizing a person's mood.

Lithium

A chemical element used in the treatment of bipolar disorder to regulate mood.