Crystal Clear Imagery received and paid a utility bill for $500 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 Withdrawal.

Question

Quizplus · Accepted Answer

When a utility bill is received and paid, it means that cash is being used to pay for an expense. Therefore, cash will decrease, and utility expense will increase. Thus, the best choice is B, which indicates a decrease in Cash and an increase in Utility Expense.

Crystal Clear Imagery Received and Paid a Utility Bill for $500