At the beginning of the period,Utilities Payable equals $500.At the end of the period,Utilities Payable equals $700.If Utilities Expense for the period equals $1,500,what was the cash paid for utilities for the period?
A)$500.
B)$1,500.
C)$1,300.

Question

Quizplus · Accepted Answer

The change in Utilities Payable ($700 - $500 = $200) represents the amount of Utilities Expense that was accrued during the period but not yet paid in cash. To calculate the cash paid for utilities, we need to subtract this amount from the total Utilities Expense for the period: $1,500 - $200 = $1,300 (Choice C).

At the Beginning of the Period,Utilities Payable Equals $500