Nuyen Services Company Records the Payment of $500 Cash for a Previously

question 96

Multiple Choice

Nuyen Services Company records the payment of $500 cash for a previously accrued expense and the accrual of $325 for another expense. The impact of these two entries on total expenses and net income is:

• A) \[\begin{array} { | l | l | }
• \hline \text { Total Expenses } & \text { Net Income } \\
• \hline \text { increase by } \$ 825 & \text { decrease by } \$ 325 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \hline \text { Total Expenses } & \text { Net Income } \\
• \hline \text { increase by } \$ 825 & \text { decrease by } \$ 825 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | }
• \hline \text { Total Expenses } & \text { Net Income } \\
• \hline \text { increase by } \$ 325 & \text { decrease by } \$ 325 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | }
• \hline \text { Total Expenses } & \text { Net Income } \\
• \hline \text { increase by } \$ 325 & \text { decrease by } \$ 825 \\
• \hline
• \end{array}\]

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Definitions:

Diploid

An organism or cell having two sets of chromosomes or twice the haploid number, typifying most body cells except for gametes.

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of DNA, responsible for carrying genetic information.

Sister Chromatids

Replicated forms of a chromosome joined together by a common centromere and eventually separated during cell division.

Anaphase II

A stage in meiosis II where sister chromatids are pulled apart by spindle fibers towards opposite poles of the cell.