Big Bite Diner Received a Bill of $800 from the Blackstone

question 127

Multiple Choice

Big Bite Diner received a bill of $800 from the Blackstone Advertising Agency. The owner, K. Lang, 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 Owner's Capital.
• C) an increase in Accounts Payable and a decrease in Owner's Capital.
• D) a decrease in Accounts Payable and an increase in Owner's Capital.

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Definitions:

Free Speech

The right to express one's opinions publicly without governmental interference or restriction.

Sedition

Conduct or speech inciting people to rebel against the authority of a state or monarch.

Morse v. Frederick

A Supreme Court case that ruled on the limits of student free speech rights under the First Amendment.

Illegal Drug Use

The consumption of substances that are prohibited by law, which may be for their psychoactive effects.