Debit Utilities Expense 400
Credit Accounts Payable 400
The answer to this question is D. A student's community service experience
C. increase of $1 million in Pacific's loan assets
If Pacific Bank does not hold excess reserves, then a decrease in the reserve requirement from 10% to 9% will render more money with the bank to lend.
Therefore, This will increase Pacific's ability to make loans.
Answer: c. Increasing volume substantially reduces production costs.
Sjcam's ability to increase the the volume substantially reduces production cost and gives them the ability to compete.
Answer: Option A
Explanation: In simple words, current liabilities refers to the obligations that are risen due to borrowings made for uses that were short term or non repetitive.
The liquidity of a company is a measurement of its ability to pay short term debt. The current liabilities are either paid in a year or in an operating cycle whichever is longer.
Hence the correct option is A.