A Company Has an Asset Account,Prepaid Utilities,with a Balance of $3,750

question 36

Multiple Choice

A company has an asset account,Prepaid Utilities,with a balance of $3,750 at the beginning of the month.The company used $980 of utilities during the month.Which of the following statements is true?

• A)The company should credit Utility Expenses for $980 and debit Prepaid Utilities for $980.
• B)Retained earnings and shareholders' equity should decrease because of this transaction.
• C)The company should credit Accrued Liabilities for $980 and debit Utility Expenses for $980.
• D)Retained earnings and shareholders' equity should be unchanged by this transaction.

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Definitions:

Majority Groups

Represents the larger segment of a population or community, holding dominant power or status compared to minority groups.

Prejudice

Unfavourable attitude towards a social group and its members.

Behavioural Component

The aspect of attitude that relates to how one intends or is disposed to behave towards an object, person, or situation.

Group Membership

The affiliation or association with certain groups which can significantly influence individuals' beliefs, behaviors, and sense of identity.