What Effect Does Recognizing an Accrued Liability for Utilities at the End

Multiple Choice

What effect does recognizing an accrued liability for utilities at the end of the accounting period have on the accounting equation?

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