Multiple Choice
What would be the effect on December's statement of earnings of a utility bill received on December 27, 2013 but which will not be paid until January 10, 2014?
A) No expense will be recognized until the bill is paid in January
B) We would cause an increase in profit by recording the expense in December
C) Recording the expense in December when it is incurred will increase expenses
D) Profit will be decreased when we pay the bill in January
Correct Answer:
Verified
Correct Answer:
Verified
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