Which of the Following Would Increase Assets and Increase Liabilities

question 63

Multiple Choice

Which of the following would increase assets and increase liabilities?

• A)Provide services to customers on account.
• B)Purchase office supplies on account.
• C)Pay dividends to stockholders.
• D)Receive a utility bill but do not pay it immediately.

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Definitions:

Short Run

In microeconomics, a period of time in which producers are able to change the quantities of some but not all of the resources they employ; a period in which some resources (usually plant) are fixed and some are variable.

Profits

The financial gain realized when the revenue generated from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Long Run

In microeconomics, a period of time long enough to enable producers of a product to change the quantities of all the resources they employ, so that all resources and costs are variable and no resources or costs are fixed.

Production Plant

A facility or set of facilities where goods are manufactured or assembled primarily from raw materials.