Paying a Utility Bill as Soon as It Was Received

question 75

Multiple Choice

Paying a utility bill as soon as it was received would:

• A)increase owners' equity.
• B)decrease revenues.
• C)increase expenses.
• D)increase liabilities.

---

Definitions:

Unfavorable

A term describing outcomes that are worse than expected or budgeted, often used in financial and operational analysis.

Favorable

A term used in financial analysis to indicate that actual performance is better than expected or budgeted performance.

Overapplied

A situation where the overhead applied to products is greater than the actual overhead incurred.

Underapplied

Refers to a situation where the actual manufacturing overhead costs are higher than the overhead costs allocated to products during a specific period.