At the End of October, Flagship Marina Received a Bill

question 8

Multiple Choice

At the end of October, Flagship Marina received a bill for fuel used in October. Payment is not due until November 30. This transaction:

• A) Should not be recorded in the accounting records until November.
• B) Causes a decrease in assets and in equity in November, when the bill is paid.
• C) Should be recorded as an expense of October, regardless of the payment date.
• D) Is recorded as a liability in October, but is not considered an expense until paid.

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