Crystal Clear Imagery received and paid a utility bill for $600 for the month of November. This transaction will:
A) increase Cash and increase Utility Expense.
B) decrease Cash and increase Utility Expense.
C) increase Cash and decrease Utility Expense.
D) increase Utility Expense and decrease Revenue.

Question

Quizplus · Accepted Answer

Paying a utility bill decreases the cash account because money is being paid out, and increases the utility expense account because it represents a cost of doing business for that period.

Crystal Clear Imagery Received and Paid a Utility Bill for $600