Which of the following entries records the receipt of a utility bill from the water company?
A) debit Utilities Expense; credit Accounts Payable
B) debit Utilities Payable; credit Accounts Receivable
C) debit Accounts Payable; credit Cash
D) debit Accounts Payable; credit Utilities Payable

Question

Quizplus · Accepted Answer

When a utility bill is received from a company, it is recorded as an expense and a liability. Therefore, the correct entry would be to debit Utilities Expense (expense account) and credit Accounts Payable (liability account) since the payment is not immediately due. Option A reflects this correctly.

Which of the Following Entries Records the Receipt of a Utility