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

Quizplus · Accepted Answer

Under the accrual basis of accounting, expenses are recorded when they are incurred, not when they are paid. Therefore, the utility bill would be recorded as a debit to Utilities Expense to recognize the expense incurred.

A Company Using the Accrual Basis of Accounting Receives Its