In an advertiser's records, a newspaper ad submitted and published this week with the agreement to pay for it next week would:

A. Decrease assets and decreases expenses.
B. Increase liabilities and increase expenses.
C. Decrease assets and increase revenue.
D. Increase assets and decrease liabilities.

The simplest rule of Accounting is when Asset or Expense will increase it will debt and any decrease in Asset or Expense will be credit. While liabilities and revenue will be debt if decreases and credit if increases.

An agreement to pay later will be a liability and a newspaper ad will be an expense, so what do think the answer is?

B