Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 38 - No. 12)
If a business receives a utility bill, which account(s) are affected?
Debit Cash, Credit Utilities Expense
Debit Utilities Expense, Credit Accounts Payable
Debit Accounts Payable, Credit Utilities Expense
Debit Utilities Expense, Credit Cash
Explanation
The expense is recognized as a debit, and a liability is created (credit).
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