Which of the Following Entries Would Record the Payment of a Utility

question 12

Multiple Choice

Which of the following entries would record the payment of a utility bill?

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

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Definitions:

Dividends

Distributions issued to shareholders by a company, typically sourced from the organization's earnings.

Repurchase

Also known as a buyback, it is a company's decision to buy its own shares from the marketplace, potentially raising the value of remaining shares.

Tax Advantages

Financial benefits derived from tax laws that reduce the amount of tax to be paid by allowing certain deductions, credits, or deferrals.

IRS

The Internal Revenue Service, the United States government agency responsible for tax collection and tax law enforcement.