Which of the following would increase assets and increase liabilities?

Question

Quizplus · Accepted Answer

Purchasing office supplies on account would increase assets (office supplies) and liabilities (accounts payable).

None of the other options would increase both assets and liabilities. 
A) Providing services to customers on account would increase assets (accounts receivable) but decrease equity (revenues earned), not change liabilities. 
C) Paying dividends to stockholders would decrease assets (cash) and equity (retained earnings), not change liabilities. 
D) Receiving a utility bill but not paying it immediately would not change assets or liabilities, but it would increase accounts payable when the bill is eventually paid.

Which of the Following Would Increase Assets and Increase Liabilities