Mitchell Company Receives a Bill from One of Its Suppliers

question 59

Multiple Choice

Mitchell Company receives a bill from one of its suppliers for advertising services received and will pay the supplier next month.How does the receipt of the bill from the supplier affect the accounting equation of Mitchell?

• A) assets and equity decrease
• B) liabilities increase and equity decreases
• C) assets and liabilities increase
• D) liabilities and equity increase

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Definitions:

A Habit

A routine behavior that is repeated regularly and tends to occur subconsciously.

Recognition

The cognitive process of identifying a previously encountered entity, such as an object, place, or person.

Homeostasis

The ability of an organism or environment to maintain stability in response to changes.

Self-Efficacy

An individual's belief in their own ability to execute behaviors necessary to produce specific performance attainments.