A Business Receives a Bill for Utilities but Decides to Pay

question 73

Multiple Choice

A business receives a bill for utilities but decides to pay it next month. The business would record the receipt of the bill by:

• A)Debiting Utilities Expense; Crediting Cash
• B)Debiting Utilities Expense; Crediting Accounts Receivable
• C)Debiting Utilities Expense; Crediting Accounts Payable
• D)Debiting Accounts Payable; Crediting Utilities Expense

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Definitions:

Stickk.com

An online platform that utilizes commitment contracts to help users achieve personal goals through financial incentives and social support.

Behavioral Economics

A field of economics that examines how psychological, social, cognitive, and emotional factors influence the economic decisions of individuals and institutions, and how those decisions vary from those implied by classical theory.

Loss Aversion

In prospect theory, the property of most people’s preferences that the pain generated by losses feels substantially more intense than the pleasure generated by gains.

Behavioral Economics

A field of economics that studies how psychological, cognitive, emotional, cultural, and social factors affect economic decisions of individuals and institutions.