A company using the accrual basis of accounting receives its utility bill which will be paid in two weeks. The entry will involve a debit to:

Question

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When a company using the accrual basis of accounting receives a bill, it recognizes the expense immediately, even if the payment will occur later. Therefore, Utilities Expense is debited to record the cost in the period in which it was incurred.

A Company Using the Accrual Basis of Accounting Receives Its