Difference Between Utilities Payable And Utilities Expense

When Utilities Expense is not paid by the company to utilities companies for the current month, then it becomes Utilities Payable for the current month.>

As Utilities Payable is the amount due by company to Utility Companies or Suppliers of Utilities bill such as Electricity bill, Water bill, Telephone bill, etc., so it is a Current Liability while Utilities Expense is the Expense paid by Cash or Bank to suppliers of Utilities Bill for the current month.

Utilities Payable is recorded on Balance Sheet as it is a Permanent Account while Utilities Expense is recorded on Income Statement as it is a Temporary Account.