The payment of utilities expense in cash would affect the operating activities in the statement of cash flows and the income statement but not the balance sheet.

Question

Quizplus · Accepted Answer

Paying utilities expense in cash affects the operating activities section of the statement of cash flows and the income statement (as an expense), and it also decreases cash in the assets section of the balance sheet, thus affecting the balance sheet.

The Payment of Utilities Expense in Cash Would Affect the Operating