What effect does recognizing an accrued liability for utilities at the end of the accounting period have on the accounting equation?

Question

Quizplus · Accepted Answer

Recognizing an accrued liability for utilities means that the company owes money for utilities that have been used but not yet paid for. This increases the liabilities of the company. As liabilities increase, stockholders' equity decreases to maintain the balance of the accounting equation. Therefore, choice D is correct.

What Effect Does Recognizing an Accrued Liability for Utilities at the End