On December 31,2015 Carmack Company Received a $215 Utility Bill

question 84

Multiple Choice

On December 31,2015 Carmack Company received a $215 utility bill for December that it will not pay until January 15.The adjusting entry needed on December 31 to accrue this expense is:

• A)Debit Utilities Expense $215;credit Accounts Payable $215.
• B)Debit Accounts Payable $215;credit Utilities Expense $215.
• C)Debit Prepaid Utilities $215;credit Cash $215.
• D)Debit Utilities Expense $215;credit Prepaid Utilities $215.
• E)Debit Prepaid Utilities $215;credit Accounts Payable $215.

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Definitions:

Supply Curve

A graphical representation of the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to supply to the market.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded.

Tax Burden

The impact of taxation on an individual or entity, often expressed as a percentage of income or revenue.

Government Imposes

The act of establishing regulations, taxes, or penalties by the government on businesses or citizens.