What Would Be the Effect on December's Statement of Earnings

question 12

Multiple Choice

What would be the effect on December's statement of earnings of a utility bill received on December 27, 2013 but which will not be paid until January 10, 2014?

• A) No expense will be recognized until the bill is paid in January
• B) We would cause an increase in profit by recording the expense in December
• C) Recording the expense in December when it is incurred will increase expenses
• D) Profit will be decreased when we pay the bill in January

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Definitions:

Chemical Kinetics

The study of the rates at which chemical reactions proceed and the factors affecting those rates.

Collision Theory

A theory that proposes chemical reactions occur and proceed at a certain rate based on the concentration, velocity, and orientation of reacting particles during collisions.

Rate Of Formation

The speed at which a product is created in a chemical reaction, usually measured in moles per liter per second.

High-energy Particles

Particles that possess energy significantly greater than average, often referring to subatomic particles such as protons, neutrons, and cosmic rays.