A Business Receives a Bill for Services Rendered from One

Multiple Choice

A business receives a bill for services rendered from one of its suppliers. The business will pay the supplier next month. When the business receives the bill from its supplier, how does this affect the accounting equation?

A) Assets decrease; owners' equity decreases.
B) Assets increase; liabilities increase.
C) Liabilities increase; owners' equity increases.
D) Liabilities increase; owners' equity decreases.