Difference Between Utilities Payable And Utilities Expense
Whe n 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 Paya ble 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 B ank to suppliers of Utilities B ill for the current month. Utilities Payable is recorded on B alance Sheet as it is a Permanent Account while Utilities Expense is recorded on Income Statement as it is a Temporary Account .