Maxwell Industries recorded and paid $700 advertising for the current month. Which occurred?
A) Current assets increase
B) Current liabilities decrease
C) Net income decreases
D) Retained earnings increases

Question

Quizplus · Accepted Answer

Paying for advertising is an expense, which reduces net income. Expenses decrease net income because they are costs incurred in the process of earning revenue.

Maxwell Industries Recorded and Paid $700 Advertising for the Current