Nature's Way used and paid for the services of its employees. As a result, it will ________.
A) decrease assets and decrease stockholders' equity
B) decrease assets and increase stockholders' equity
C) increase assets and increase stockholders' equity
D) increase assets and decrease stockholders' equity

Question

Quizplus · Accepted Answer

When Nature's Way pays for the services of its employees, it decreases its assets (cash) and also decreases stockholders' equity (through an expense, which reduces retained earnings).

Nature's Way Used and Paid for the Services of Its