As the owner of a hair salon business, you expect to recieve the utility bill on June 14 for the service provided in May. The average monthly bill is around $3,500. 1. When should the utility bill be recorded dated June 14? a) In June, because this is when you received the bill. b) In July, because this is when you will pay the bill. c) In May, because this is when the expense was incurred.
As the owner of a hair salon business, you expect to recieve the utility bill on June 14 for the service provided in May. The average monthly bill is around $3,500. 1. When should the utility bill be recorded dated June 14? a) In June, because this is when you received the bill. b) In July, because this is when you will pay the bill. c) In May, because this is when the expense was incurred.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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As the owner of a hair salon business, you expect to recieve the utility bill on June 14 for the service provided in May. The average monthly bill is around $3,500.
1. When should the utility bill be recorded dated June 14?
a) In June, because this is when you received the bill.
b) In July, because this is when you will pay the bill.
c) In May, because this is when the expense was incurred.
Please explain for the answer.
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