When Utility Customers Are Billed During the Year, the Enterprise

question 6

Multiple Choice

When utility customers are billed during the year, the enterprise fund journal entry will include:

• A) A debit to Sales of Water.
• B) A debit to Cash - Restricted.
• C) A debit to Customer Accounts Receivable.
• D) A debit to Billings to Customers.  

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Definitions:

Calendar-year

A one-year period starting on January 1 and ending on December 31, used as the fiscal year by many companies.

Interest Income

Income earned on various forms of investments like savings accounts, certificates of deposit, bonds, and loans.

Credit Sales

Sales made by a business where payment is deferred, allowing the purchaser to pay at a later date.

Supplemental Detail

Additional information provided alongside financial statements to explain specific items or to disclose information not fully captured within the main financial statements.