Utility expense
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Utility expense
Expert Solution
Step 1 Introduction
Energy, water, and trash disposal are all utilities that are used in the home or business and incur a cost. In the reporting period, costs are incurred and accumulated, or payments are made. In other words, It's an expenditure for a shop or a service provider to pay their utility bill each month. Utilities are considered a cost under accrual-basis accounting since they are calculated based on dates of meter readings.
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