A Company Incurred $2,000 for Utilities for the Last Month

question 44

Multiple Choice

A company incurred $2,000 for utilities for the last month of Year 2.The company paid the bill during the first month of Year 2.Which of the following statements is correct?

• A) The related $2,000 should be reported on the income statement for Year 1 as Utilities Expense.
• B) Since it has not been paid, this utility bill would not be reported in the financial statements for Year 1.
• C) The related $2,000 should be included in Accounts Receivable on the balance sheet at the Year 1.
• D) The related $2,000 should be included in Utilities Expense on the balance sheet at the end Year 1.

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Definitions:

Non-P

Indicates something that is not specified by the predicate "P," often used in logic or discussions to denote the exclusion or negation of a certain property.

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Shading

The act of adding darkness to part of a drawing or diagram to indicate depth, form, or differentiation.