A Business Receives a Bill for Services Rendered from One

question 125

Multiple Choice

A business receives a bill for services rendered from one of its suppliers.The business will pay the supplier next month.When the business receives the bill from its supplier,how does this affect the accounting equation?

• A) Assets decrease; owner's equity decreases.
• B) Liabilities increase; owner's equity decreases.
• C) Assets increase; liabilities increase.
• D) Liabilities increase; owner's equity increases.

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Definitions:

Sand, Gravel

Natural aggregate materials consisting of fine particles (sand) and coarse particles (gravel), used in construction and as soil components.

Cement

A binder, a substance used in construction that sets, hardens, and adheres to other materials, binding them together, typically made from limestone and clay.

Rocky Mountain Area

A major mountain range in western North America, extending from northern Canada to New Mexico.

Gulf Coast Area

A geographic region along the coastline of the Gulf of Mexico, known for its distinct ecological and cultural attributes.