Question

Utility costs that relate to current year's operations but are not paid until the following year require:______

Answer 1

Utility costs that relate to current year's operations but are not paid until the following year require:

• a debit to Utilities Expense
• a credit to Utilities Payable

What happens when expenses are not paid?

Expenses are meant to be paid within the accounting period that they occur and if this does not happen, then they are to be treated as current liabilities in the Balance sheet.

This means that the Utilities Expense account will be debited as is the norm but the account that will then be credited is the Utilities Payable account which is a current liability.

Options for this question:

(Select all that apply.)

• a debit to Prepaid Expense - Utilities
• a debit to Utilities Expense
• no journal entry
• a credit to Utilities Payable
• a credit to Cash

Find out more on recording expense payables at brainly.com/question/16781277

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