Maxwell Industries recorded and paid $700 advertising for the current month. Which occurred?
A) Current assets increase
B) Current liabilities decrease
C) Net income decreases
D) Retained earnings increases

Question

Quizplus · Accepted Answer

When a company records and pays for advertising, it is considered an expense. This expense reduces the company's net income for the period because expenses are subtracted from revenues to calculate net income.

Maxwell Industries Recorded and Paid $700 Advertising for the Current