When cash is paid for utilities:
A) stockholders' equity is decreased.
B) expenses are decreased.
C) assets are increased.
D) liabilities are increased.

Name: When cash is paid for utilities: A) stockholders' equity is decreased. B) expenses are decreased. C) assets are increased. D) liabilities are increased.
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Question

Quizplus · Accepted Answer

When cash is paid for utilities, it is recorded as an expense, which decreases net income and subsequently decreases stockholders' equity.

When Cash Is Paid for Utilities