A Company Received a Bill of $2,110 for Utilities Used

question 221

Multiple Choice

A company received a bill of $2,110 for utilities used in the current month.The journal entry to record this event:

• A)will include a debit to Accounts Receivable for $2,110.
• B)will include a credit to Accounts Payable for $2,110.
• C)will include a credit to Utilities Expense.
• D)is not required;no journal entry should be prepared until the utilities bill is paid.

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Definitions:

Conventional Budgeting

A traditional approach to budgeting that involves planning income and expenditures for a fixed period.

Resource Consumption

The process of using resources such as materials, energy, or time, typically quantified for analysis and optimization in various contexts.

Two-Way Analysis

A method used in statistics or research to examine the effect of two different variables on an outcome simultaneously.

Overhead Variances

Overhead Variances are differences between the actual overhead incurred and the standard or expected overhead, used to assess the efficiency of overhead cost control.