The Payment of Utilities Expense in Cash Would Affect the Operating

question 45

True/False

The payment of utilities expense in cash would affect the operating activities in the statement of cash flows and the income statement but NOT the balance sheet.

---

Definitions:

Cash Paid

The total amount of currency that an entity disburses in exchange for goods or services or to settle debts.

Suppliers

Entities or individuals that provide goods or services to another entity, typically in a commercial transaction.

Income Tax Expense

The amount of money a company owes in taxes based on its taxable income for a given period.

Income Taxes Payable

Represents the amount of taxes on income that a company owes to the government but has not yet paid.