Asked by Maria Anjanette Sarmiento on May 18, 2024
Verified
Which of the following journal entries correctly records the receipt of a utility bill,which will be paid for in later weeks?
A) 
B) 
C) 
D) 
Utility Bill
A regular invoice for essential services such as electricity, water, gas, or telecommunications provided to individuals or businesses.
Journal Entries
The record of financial transactions as they occur, detailing the accounts that are affected and in what way.
Receipt
A document acknowledging that a payment has been made or that goods have been received.
- Comprehend the concepts of liabilities and assets and their impact on the financial statements when transactions occur.
Verified Answer
CK
Crave KhemicalMay 20, 2024
Final Answer :
B
Explanation :
Option B correctly records the receipt of a utility bill and the liability created for it. The utility expense is debited as the company has incurred the cost, and the accounts payable is credited to record the liability. Options A, C, and D do not correctly record the liability and only debit the utility expense account.
Learning Objectives
- Comprehend the concepts of liabilities and assets and their impact on the financial statements when transactions occur.