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

Nadim Uddin · Accepted Answer

Final Answer : B, Explanation :  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.

Definitions

Learning Objectives

Learning Objectives

Related questions