At the End of the Month, the Business Receives a Bill

question 104

Essay

At the end of the month, the business receives a bill for utility expenses of $800 incurred during the month. The business will pay the bill during the following month. Please provide the journal entry (debits first, credits second.)

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Definitions:

Annual Margin

The amount of profit a company generates over a year after all expenses have been subtracted from revenues.

Investment Center

A business unit or segment within a larger corporation that is responsible for its own revenue, expenses, and investments, often evaluated on its return on investment.

Return on Assets

Return on Assets (ROA) is a financial ratio that indicates the profitability of a company relative to its total assets.

Profit Center

A segment or branch of a company that is responsible for generating its own revenues and profits, effectively treated as a separate entity for accounting purposes.