Which of the following transactions results in an increase in expenses?
A) Cash payment on accounts payable
B) Receive a bill for the usage of utilities
C) Repayment of principal of bank loan
D) Purchase of machinery on credit

Question

Quizplus · Accepted Answer

Receiving a bill for the usage of utilities will result in an increase in expenses as it represents a cost incurred by the company during the period. The other choices either involve a reduction in liabilities (A) or assets (D) or do not affect expenses directly (C).

Which of the Following Transactions Results in an Increase in Expenses