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:

Extreme

Relating to values that are farthest from the mean or median in a data set, often considered outliers.

Z Score

A calculation used to express the difference of a particular value from a group's mean, in terms of how many standard deviations away it is.

T Score

A standardized score that indicates how many standard deviations an element is from the mean of its distribution.

Z Scores

Standard scores indicating how many standard deviations an element is from the mean.