Your Business Advisor, a Consulting Company, Uses Reversing Entries $$\begin{array} { | c | r | r | } \hline \text { Utilities Expense } & 400 & \\\hline \text { Utilities Payable } & & 400 \\\hline\end{array}$$

question 161

Multiple Choice

Your Business Advisor, a consulting company, uses reversing entries. On March 31, 2018, the bookkeeper journalized and posted the following adjusting entry to accrue Utilities Expense: $$\begin{array} { | c | r | r | } \hline \text { Utilities Expense } & 400 & \\\hline \text { Utilities Payable } & & 400 \\\hline\end{array}$$ Which of the following entries is the correct reversing entry to be prepared on April 1, 2018?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Utilities Payable } & 400 & \\
• \hline \text { Utilities Expense } & & 400 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Utilities Expense } & 400 & \\
• \hline \text { Income Summary } & & 400 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Cash } & 400 & \\
• \hline \text { Utilities Expense } & & 400 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Utilities Expense } & 400 & \\
• \hline \text { Accounts Receivable } & & 400 \\
• \hline
• \end{array}\]

---

Definitions:

Specific Phobias

A type of anxiety disorder characterized by an excessive and irrational fear of a specific object, situation, or activity that poses little to no real danger.

Anxiety Disorders

A category of mental health disorders characterized by feelings of anxiety and fear that are excessive, persistent, and can interfere with daily activities.

Voyeurism

A sexual interest in or practice of spying on people engaged in intimate behaviors, such as undressing or sexual activity.

Psychosomatic Illnesses

Illnesses that involve both mind and body, where psychological factors play a significant role in the development, progression, or outcome of a physical illness.