The Accounting Transaction to Record Payment of the Telephone Bill

question 75

Multiple Choice

The accounting transaction to record payment of the telephone bill would include a:

• A) debit to Accounts Receivable
• B) credit to Utilities Expense
• C) credit to Accounts Payable
• D) credit to Cash

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that guide the preparation of financial statements globally.

General Ledger

The master accounting document providing a complete record of all financial transactions of a company.

Revenue Recognition

The accounting principle that determines the specific conditions under which income becomes recognized as revenue.

Statement

A financial report providing information about an entity's financial position, performance, or changes in financial position, which can influence economic decisions.