Your Best Advisors,a Service Company,uses Reversing Entries $$\begin{array} { | c | r | r | } \hline \text { Utilities Expense } & 400 & \\\hline \text { Utilities Payable } & & 400 \\\hline\end{array}$$

question 63

Multiple Choice

Your Best Advisors,a service company,uses reversing entries.On March 31,2016,they 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 1,2016?

• 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:

Earnings Per Share

A company's net profit divided by the number of its shares outstanding, indicating the amount of earnings attributable to each share of stock.

Payment Date

The date on which a dividend check is mailed.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Cash Dividend

A payment made in cash to shareholders, typically distributed from a company's earnings.