Paying a Utility Bill as Soon as It Was Received

question 71

Multiple Choice

Paying a utility bill as soon as it was received would:

• A)increase expenses.
• B)increase liabilities.
• C)increase owners' equity.
• D)decrease revenues.

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Definitions:

Short-Term Debt

Financial obligations that are due for repayment within one year from the current date.

Debt Financing

Raising capital through borrowing money that must be repaid over time, with interest, typically through loans or the issuance of bonds.

Sound Financial Foundation

A stable and healthy financial status characterized by manageable debt levels, strong cash flow, and sufficient reserves for future needs.

Debt Worthy

A term indicating an individual or organization's capability and reliability in repaying borrowed money, often assessed by creditworthiness.