Is utility expense on the balance sheet?
Understand the Problem
The question is asking whether utility expenses are recorded on the balance sheet. It implies a need for understanding financial statements and where specific expenses are categorized.
Answer
Utilities expenses don't appear on the balance sheet, except as unpaid liabilities.
Utilities expense does not appear on the balance sheet unless it's unpaid, in which case it appears as a liability under accounts payable.
Answer for screen readers
Utilities expense does not appear on the balance sheet unless it's unpaid, in which case it appears as a liability under accounts payable.
More Information
Under the accrual basis of accounting, unpaid utility expenses at the balance sheet date are listed under accounts payable, demonstrating the company's short-term liabilities.
Sources
- Where do utilities go on a balance sheet - Quora - quora.com
- Are utility bills an expense or a liability? | AccountingCoach - accountingcoach.com
- Utilities expense definition - AccountingTools - accountingtools.com
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