Publishing for Personnel,Inc.,received and paid its utility bill of $800.As the accountant,you would tell the bookkeeper to
A)debit Utility Expense and credit Cash for $800.
B)debit Cash and credit Utility Payable for $800.
C)debit Cash and credit Utility Expense for $800.
D)debit Cash and credit Retained Earnings for $800.
E)debit Utility Receivable and credit Cash for $800.

Question

Quizplus · Accepted Answer

When a company pays a utility bill, it increases (debits) its Utility Expense account to reflect the incurred expense and decreases (credits) its Cash account to show the outflow of cash.