When a Company Receives a Utility Bill but Will Not

question 190

Multiple Choice

When a company receives a utility bill but will not pay it right away, it should

• A)debit Utilities Expense and credit Accounts Receivable.
• B)debit Utilities Expense and credit Accounts Payable.
• C)debit Accounts Payable and credit Utilities Expense.
• D)make no entry until the bill is paid.

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Definitions:

Experience

The knowledge or skill acquired by a person over time through direct involvement or exposure to events or activities.

Coefficient of Determination

A statistic that gives the proportion of the variance in the dependent variable that is predictable from the independent variable(s), typically represented as R^2.

Sales

The activity or process of selling goods or services.

Experience

The knowledge or skill acquired by a period of practical exposure to activities in a particular field, often affecting one's performance or understanding.