At the End of October, Flagship Marina Received a Bill

Multiple Choice

At the end of October, Flagship Marina received a bill for fuel used in October. Payment is not due until November 30. This transaction:

A) Should not be recorded in the accounting records until November.
B) Causes a decrease in assets and in equity in November, when the bill is paid.
C) Should be recorded as an expense of October, regardless of the payment date.
D) Is recorded as a liability in October, but is not considered an expense until paid.