If a Company Is Paid in Full for Services Provided

question 5

Multiple Choice

If a company is paid in full for services provided this month,how will the basic accounting equation be affected?

• A)Liabilities will decrease.
• B)Stockholders' equity will increase as revenue is recorded.
• C)Liabilities will increase.
• D)Assets will decrease.

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Definitions:

Marginal Utility

The additional satisfaction or benefit a consumer receives from consuming one more unit of a good or service.

Newspaper

A publication, generally made of paper and ink, that is distributed on a regular or daily basis and contains news, articles, advertisements, and other information of public interest.

Marginal Utility

The supplementary contentment or value a shopper obtains by buying an extra unit of a certain item or service.

Total Utility

The overall satisfaction or value a consumer receives from consuming a given quantity of goods or services.