At the End of October,Flagship Marina Received a Bill for Fuel

question 113

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 owners' 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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Definitions:

Linear Model

A statistical method that describes the relationship between two or more variables using a straight line.

Regression

A statistical method used to understand the relationship between a dependent variable and one or more independent variables.

Kilowatt-Hours

A unit of energy measurement equal to the power consumption of one thousand watts for one hour.

Square Feet

A unit of area measurement in the Imperial and US customary systems, used to measure the size of an area.