Your Business Advisor,a Consulting Company,uses Reversing Entries $\begin{array}{|l|c|c|}\hline\text { Utilities Expense } & 100 \\\hline \text { Utilities Payable } &&100 \\\hline\end{array}$

question 37

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: $\begin{array}{|l|c|c|}\hline\text { Utilities Expense } & 100 \\\hline \text { Utilities Payable } &&100 \\\hline\end{array}$ Which of the following entries is the correct reversing entry to be prepared on April 1,2018?

• A) \(\begin{array}{|l|r|r|}
• \hline \text { Utilities Payable} &100\\
• \hline \text { Utilities Payable} &&100\\
• \hline
• \end{array}\)
• B) \(\begin{array}{|c|c|c|}
• \hline \text { Utilities Expense } & 100 \\
• \hline \text { Income Summary } & & 100 \\
• \hline
• \end{array}\)
• C) \[\begin{array} { |l | r | r | }
• \hline \text { Cash } & 100 \\
• \hline \text { Utilities Expense } & & 100 \\
• \hline
• \end{array}\]
• D) \(\begin{array}{|c|c|c|}
• \hline \text { Utilities Expense } & 100 \\
• \hline \text { Accounts Receivable } & & 100 \\
• \hline
• \end{array}\)

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Definitions:

Employee Files

Organized collections of records pertaining to employees, including personal information, employment history, and performance evaluations.

Administrative Costs

Expenses related to the general operations of a business, including items like salaries of non-sales personnel, rent, utilities, and office supplies.

Employee Leasing

A staffing strategy where companies contract with a third-party to hire and manage their workforce, often to reduce administrative responsibilities.

Professional Employer Organization

A firm that provides a service under which an employer can outsource employee management tasks, such as benefits administration, payroll, and workers' compensation.