The accounting transaction to record payment of the telephone bill would include a:

Question

Quizplus · Accepted Answer

Payment of the telephone bill would result in a decrease (credit) to the Cash account as cash is going out of the business to pay the bill. There is no involvement of Accounts Payable or Accounts Receivable in this transaction. Utilities Expense is not relevant in this transaction as it is specific to the cost of utilities and not the telephone bill payment.

The Accounting Transaction to Record Payment of the Telephone Bill