A Company Incurred $2,000 for Utilities for the Last Month

question 132

Multiple Choice

A company incurred $2,000 for utilities for the last month of the year.The company has not paid this bill yet.Choose the TRUE statement.

• A)$2,000 should be reported on the income statement as Utilities Expense.
• B)Nothing should be reported about this in the current year's financial statements.
• C)$2,000 should be reported as Accounts receivable on the Balance Sheet at the end of the year.
• D)$2,000 should be reported as Utilities Expense on the Balance Sheet at the end of the year.

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Definitions:

Interest Due

The amount of interest payment that must be paid at a scheduled date for borrowed funds.

Payroll Register

A document that details the payments made to employees, including salaries, wages, deductions, and net pay.

Net Payroll

The total amount of wages paid to employees after the deduction of taxes and other withholdings.

IFRS

International Financial Reporting Standards, which are designed to bring consistency to accounting language, practices, and statements on a global scale.