Online Service Received Its Telephone Bill for January, but Is

question 49

Multiple Choice

Online Service received its telephone bill for January, but is not going to pay the bill until February. What adjustment is needed to record the transaction?

• A) Debit Telephone Expense; credit Cash
• B) Debit Accounts Payable; credit Telephone Expense
• C) Debit Telephone Expense; credit Accounts Payable
• D) Debit Accounts Payable; credit Cash

---

Definitions:

Manufacturing Costs

The total expenses involved in the manufacture of products, including direct materials, direct labor, and factory overhead.

Inventory Accounts

Accounts used to track the cost of goods that are either manufactured or purchased for resale by a business.

Expense Accounts

Expense accounts are ledger accounts that track the costs incurred by an organization during its operations.

Cost Accounting Systems

Systems used by businesses to record, measure, and report on costs associated with their operations, to aid in budgeting and performance evaluation.