The payment of a utility bill (like electricity)for the month would include
A) debiting Capital and crediting Accounts Payable.
B) debiting Cash and crediting Utilities Expense.
C) debiting Utilities Expense and crediting Accounts Payable.
D) debiting Utilities Expense and crediting Cash.

Question

Quizplus · Accepted Answer

The payment of a utility bill would decrease Cash, since money is leaving the company's account to pay the expense. At the same time, the expense should be recognized by debiting the Utilities Expense account. Therefore, the correct choice is to debit Utilities Expense and credit Cash.

The Payment of a Utility Bill (Like Electricity)for the Month