A Utility Bill Is Received for Expenses Incurred

question 53

Multiple Choice

A utility bill is received for expenses incurred.It will be paid in the following accounting period.Which of the following would be TRUE as a result of the receipt of the utility bill?

• A) Net income will increase.
• B) Owner's equity will decrease.
• C) Total liabilities will decrease.
• D) There will be no effect on total liabilities.

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