Ask Question
BusinessBusiness
2 May, 08:04

What is the effect on total assets and stockholders' equity of paying the telephone bill as soon as it is received each month? Total assets Stockholders' equity A. No effect Decrease B. No effect No effect C. Decrease No effect D. Decrease Decrease

+4
Answers (1)
  1. 2 May, 08:25
    0
    Option C) Decrease in Total Assets, and No Effect on Equity

    Explanation:

    Telephone bill it's a Current Liability, if you decide to pay it as soon as you receive it you have to use Cash which is part of your Current Asset, so the impact it's a decreased in your Current Assets through the Cash component.

    This movement has no impact in the Sotckholder Equity.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “What is the effect on total assets and stockholders' equity of paying the telephone bill as soon as it is received each month? Total assets ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
An illiquid asset cannot serve as a: A) medium of exchange. B) unit of account. C) store of value. D) store of wealth.
Answers (1)
Watercraft, Inc., employs Vladimir as a sales agent for a trial period. At the end of the period, Watercraft and Vladimir disagree on the amount of the commissions Vladimir is due for sales that he made.
Answers (1)
Given - Lamar Corporation owns 60 percent of Humbolt Corporation's voting shares. On January 1, 20X2, Lamar Corporation sold $170,000 par value, 10 percent first mortgage bonds to Humbolt for $177,000.
Answers (1)
In a period of rising prices, a company is most likely to use the specific identification method of pricing inventory if: a. Each item in the inventory is unique. b.
Answers (1)
Elaine supervises 30 sanitation engineers. She fills out a form that rates such factors as loyalty, cooperation, attendance, and job knowledge. She checks off the answer for each item, which usually has 5 to 10 options.
Answers (1)
New Questions in Business
In which year were tobacco commercials banned from network television in the united states?
No Answers
Maggie's manager notices that she exhibits an external locus of control when she speaks about her work. Her manager should Group of answer choices a. direct Maggie toward a job with more autonomy. b.
Answers (1)
Consider this argument: "The kidnappers have taken eight people hostage and are holding them at a farmhouse just outside town. If the SWAT team assaults the farmhouse, the hostages could be killed.
Answers (1)
Rent seeking is an attempt to A. use the government for individual benefit at the expense of others. Regulatory capture is an example of this, where a regulatory agency makes decisions benefiting the firm being regulated. B.
Answers (1)
An Insurance company is a business in which it pays to the company if there is a loss, damage, treatments or injury for the payment of premium amount. It calculates the risks that has occurred and pays to compensate the premium amount.
Answers (1)
Home » Business » What is the effect on total assets and stockholders' equity of paying the telephone bill as soon as it is received each month? Total assets Stockholders' equity A. No effect Decrease B. No effect No effect C. Decrease No effect D. Decrease Decrease
Sign Up Forgot Password?