An account for advertising that had appeared in a local newspaper was received.There was no previous record of the charge.
A) An asset increased and another asset decreased.
B) An asset decreased and an expense increased.
C) An asset decreased and a liability decreased.
D) A liability increased and an expense increased.

Question

Quizplus · Accepted Answer

When an account for advertising is received and there was no previous record of the charge, it means that the company now owes money for the advertising service, which increases a liability (accounts payable). At the same time, the expense for advertising increases because the service has been consumed, impacting the income statement by reducing net income.

An Account for Advertising That Had Appeared in a Local