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:

Cereal Brands

Companies that manufacture and market different types of breakfast cereal.

Product Differentiation

The process of distinguishing a product or service from others in the market to make it more appealing to a specific target market.

Pure Monopoly

A market structure where a single supplier provides a unique product or service, facing no competition due to high barriers to entry.

State Utility Commission

A governmental body responsible for regulating the rates and services of utilities within a specific state.