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:

Sales Goals

Specific objectives set by a business related to the amount of product or services sold within a particular timeframe.

Proprietorship

A type of business entity owned and run by one individual, with no distinction between the business and the owner.

Personal Loans

Unsecured loans given to individuals based on their credit score and other factors, used for personal expenses.

Debts

Money that is owed or due to another individual or entity.