Which of the Following Entries Causes a Decrease in Assets

question 78

Multiple Choice

Which of the following entries causes a decrease in assets and in net income?

• A) The entry to record the payment of utilities with cash.
• B) The entry to record the payment of rent for three months in advance.
• C) The entry to record accrued wages payable.
• D) The entry to record revenue earned but not yet received.

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Definitions:

New Issue

The term for securities that are offered to the public for the first time through an initial public offering (IPO) or a bond issuance.

Prospectus

A formal legal document that is required by and filed with securities regulatory bodies that provides details about an investment offering to the public.

Venture Capital

Financing provided by investors to startup companies and small businesses with long-term growth potential in exchange for an equity stake.

Venture Capitalist

A Venture Capitalist is an investor who provides capital to startups or small companies looking to expand but do not have access to equities markets.