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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