Which of the following transactions does not result in an increase in expenses?
A)Payment of accounts payable.
B)Usage of utlities.
C)Allocation of the cost of a building.
D)Expiration of prepaid insurance.

Question

Quizplus · Accepted Answer

Payment of accounts payable is a liability transaction that does not increase expenses; it merely settles an obligation without affecting the income statement. Choices B, C, and D all involve recognizing or incurring expenses that impact the income statement.

Which of the Following Transactions Does Not Result in an Increase