A Company Received a Bill of $3,500 for Utilities Used

question 5

Multiple Choice

A company received a bill of $3,500 for utilities used in the current month.The journal entry to record this event:

• A) will include a debit to Accounts Receivable for $3,500.
• B) will include a credit to Accounts Payable for $3,500.
• 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:

Reversibility

The understanding that objects can change form and return to their original state, a concept significant in cognitive development.

Concrete Operational

A stage in Piaget’s theory of cognitive development, ranging from about 7 to 11 years of age, where children gain a better understanding of mental operations and can think logically about concrete events.

Sensorimotor

The sensorimotor stage is a phase of development in which infants learn about the world through their sensory experiences and motor activities.

Formal Operational

A stage in Jean Piaget's theory of cognitive development, typically starting around age 12, where individuals develop the ability to think abstractly and critically.