Are Utilities Expenses Assets Or Liabilities?
Utilities Expenses are neither Assets nor Liabilities under Cash Basis of Accounting System as these are the Expenses paid by the companies / corporations to Utilities Companies against the facilities received in the form of Electricity, Gas, Water, Telephone, Internet Connections, etc., However, by following Accrual Basis of Accounting System, utilities expenses are either considered as Liabilities or Assets, depending upon the business's point of view. So, when utilities expenses are not paid, then these become Current Liabilities for companies using these facilities and become Current Assets for suppliers or Utility Companies which supplies utilities facilities to consumers. For example, when utilities expenses are not paid at the end of the accounting period, then these become utilities payable for the companies to pay to utilities companies for the facilities used during the month. Such utilities expenses are Current Liabilities for the company to be ...