In October,your Company Prepays Rent of $7,000 for November and December.Which

Multiple Choice

In October,your company prepays rent of $7,000 for November and December.Which of the following describes the effects of this transaction in October?

A) Assets decrease $7,000 and liabilities decrease $7,000.
B) Assets increase $7,000 and Shareholders' equity increases $7,000.
C) There is no change to total assets,liabilities or Shareholders' equity.
D) Liabilities decrease $7,000 and Shareholders' equity increases $7,000.