contestada

Aying a utility bill when received would _______.
a. increase expenses
b. increase owners' equity
c. decrease revenues
d. increase liabilities

Respuesta :

When receiving a utility bill, playing it would result in increase expenses.

Some of a company's expenses will rise when sales or increase expenses, while other expenses won't alter. A company's cost of goods sold will rise as well as its commissions costs, for instance, if it sells a few more things for which it pays a sales commission. However, even with the sale of a few more products, the salaries of the salaried staff and the rent paid by the business would not rise one penny.

Knowing how increase expenses, such as whether they will rise as sales do or whether they will remain at the same level, can help a business enhance its increase expenses. The objective is to raise sales or revenues by a quantity greater than the quantity by which expenses increase.

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