Friday, October 9, 2020

How many of the following transactions would increase total liabilities in the current period?

How many of the following transactions would increase total liabilities in the current period?


• Pay for advertising that will not occur until the following period.

• Collect cash from customer prior to providing service.

• Incur, but not pay, utilities cost in the current period.

• Order supplies that have not yet been received.


A) One.

B) Two.

C) Three.

D) Four.


Answer: B

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