217k views
5 votes
When a utility bill is paid with cash, cash is decreased and utilities expense is __________?

User Cadaniluk
by
5.2k points

1 Answer

4 votes
I believe the answer Increased.
Utility bill is considered as an expense that could be deducted from profit for taxation purpose. (all expense are recorded in debet when increased)
Because we pay the bill with cash, there would be a cash outflow from our reserve toward the utility provider, hence resulting in decreasing cash.
User Kevin Rajan
by
5.4k points