Which of the following entries causes a decrease in assets and in net income?
A) The entry to record the payment of utilities with cash.
B) The entry to record the payment of rent for three months in advance.
C) The entry to record accrued wages payable.
D) The entry to record revenue earned but not yet received.

Question

Quizplus · Accepted Answer

The entry to record the payment of utilities with cash decreases assets (cash) and decreases net income because it is an expense.

Which of the Following Entries Causes a Decrease in Assets