If a bill is received but a check is not written to pay it, what occurs?

When a bill is received but a check is not yet written to pay it, it indicates that the obligation to pay for the expense has been recognized, but the actual cash outflow has not occurred. In accounting, this situation is reflected by the increase in accounts payable, which represents the liability to pay the supplier or service provider, and the corresponding increase in the expense account, which records the expense incurred by the community association.

When the bill is recorded, it signifies that both an expense has been incurred—it reflects the consumption of goods or services—and that the payment is still outstanding, leading to an increase in accounts payable. This means the expenses recognized on the income statement grow, while the liability shown on the balance sheet also increases, thereby reflecting the obligation that has been created by receiving the bill.

The other options do not accurately depict this scenario; for example, decreased accounts payable or a decrease in the expense account cannot happen if an obligation to pay has just been established. Thus, the correct choice properly reflects both the rise in liabilities and expenses when a bill is received but not paid.