A Bill Is Received for Electric Service;the Charge for the Electricity

Multiple Choice

A bill is received for electric service;the charge for the electricity is recorded,but payment will be made later.For this transaction,identify the effect on the accounting equation.

A) Assets increase and liabilities increase.
B) Assets increase and stockholders' equity increases.
C) Liabilities increase and stockholders' equity decreases.
D) Liabilities decrease and assets decrease.