Paying a repair bill as soon as it was received would:
A)increase expenses.
B)increase liabilities.
C)increase owners' equity.
D)decrease revenues.

Question

Quizplus · Accepted Answer

Paying a repair bill would result in a cash outflow, which would increase expenses. The other options (increase liabilities and increase owners' equity) are not affected by the payment of a repair bill. Decreasing revenues would only occur if the repair bill was related to a refund or compensation for a customer.

Paying a Repair Bill as Soon as It Was Received