Payment Is Made for an Electric Bill Which Was Received

question 82

Multiple Choice

Payment is made for an electric bill which was received and recorded earlier.For this transaction,identify the effect on the accounting equation.

• A)Assets increase and liabilities increase.
• B)Assets increase and stockholders' equity increases.
• C)Liabilities increase and stockholders' equity decreases.
• D)Liabilities decrease and assets decrease.

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Definitions:

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A concept suggesting that certain roles, behaviors, or practices are determined or influenced by natural characteristics or inherent tendencies.

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Something undesirable but considered unavoidable or essential to achieve a desired outcome or to prevent a worse scenario.

Indian Removal

The 19th-century policy of the United States government aimed at relocating Native American tribes from their ancestral lands in the eastern U.S. to territories west of the Mississippi River.

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A U.S. state located in the southeastern region, known for its historical significance, diverse landscapes, and economic contributions.