A Business Received the Current Month's Utility Bill for $2,125,and

question 106

Multiple Choice

A business received the current month's utility bill for $2,125,and immediately paid it.Which journal entry is prepared?

• A)Debit Accounts Payable for $2,125 and credit Cash for $2,125.
• B)Debit Utilities Payable for $2,125 and credit Cash for $2,125.
• C)Debit Utilities Expense for $2,125 and credit Cash for $2,125.
• D)Debit Operating Expense for $2,125 and credit Accounts Payable for $2,125.

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Definitions:

Shares

Shares represent the portion of ownership in a company or an investment that entitles the holder to a proportional claim on profits, which may be paid out as dividends if declared.

Unissued Stock

Shares that a company is authorized to issue according to its corporate charter but has not yet issued to shareholders.

Outstanding Bonds

Bonds issued by an entity that are currently not redeemed and are in the hands of investors, indicating debt that still needs to be paid off.

Allocation

The process of distributing resources or assigning tasks among various projects, units, or individuals.