What would be the effect on accounts if the business received the telephone bill but did not pay it immediately?
A) An expense would be debited and a liability credited.
B) Capital would be debited and revenue credited.
C) An expense would be debited and an asset credited.
D) An asset would be debited and Capital credited.

Question

Quizplus · Accepted Answer

If the business received the telephone bill but did not pay it immediately, it would have a liability to pay that bill in the future. Therefore, the expense would be recorded by debiting the expense account and the liability would be recorded by crediting the accounts payable account.

What Would Be the Effect on Accounts If the Business