The water utility fund of the City of Pikesville uses cycle billing procedures.Under these procedures,the City of Pikesville will likely do which of the following on December 31,the end of its fiscal year?

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The cycle billing procedures involve billing customers at different times throughout the month, so it is likely that not all customers will be billed on December 31. Therefore, Option A is incorrect. Option C is not a valid accounting practice as it would result in an inaccurate financial statement. Option D is not a realistic option, as it would not ensure meter readings are accurate. Accruing revenue and a receivable for the number of days from the last billing date for each customer until December 31 is the correct accounting treatment for cycle billing procedures. Therefore, Option B is the best choice.

The Water Utility Fund of the City of Pikesville Uses