At December 31, 2012, a company has received, but not paid, a utility bill for $250. The amount of utility expense for the current period equals $250.

Question

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Since the company has received but not paid the utility bill for $250 by December 31, 2012, it means that the expense has been incurred but not yet recorded in the accounts. Therefore, the amount of utility expense for the current period equals $250.

At December 31, 2012, a Company Has Received, but Not