Choose the correct answer regarding the effect of the following transaction on the 2021 income statement of ABC Company. On December 30, 2021, ABC receives an invoice for machine maintenance services provided throughout the month of December by another company. This invoice will be paid by ABC in March 2022. Options for Question 31:

No expense should be recognized in 2021 until the invoice is paid in 2022.

Recognition of the expense in December 2021 results in an increase in income for the year 2021

Recognition of the expense in December 2021, in the year in which it is incurred, increases expenses and decreases income in 2021

Profit or loss for 2021 is decreased when the company pays the invoice in March 2022.