A company has an asset account, prepaid utilities, with a balance of $3,750 at the beginning of the month. The company used $980 of utilities during the month. Which of the following statements is true?

A. The company should credit utility expenses for $980 and debit prepaid utilities for $980.

B. Retained earnings and shareholders' equity should decrease because of this transaction.

C. The company should credit accrued liabilities for $980 and debit utility expenses for $980.

D. Retained earnings and shareholders' equity should be unchanged by this transaction.

A company has an asset account, prepaid utilities, with a balance of $3,750 at the beginning of the month. The company used $980 of utilities during the month. Which of the following statements is true? A. The company should credit utility expenses for $980 and debit prepaid utilities for $980. B. Retained earnings and shareholder' equity should decrease because of this transaction. C. The company should credit accrued liabilities for $980 and debit utility expenses for $980. D. Retained earnings and shareholders' equity should be unchanged by this transaction