A company has the following transactions:

Pay employees' salaries for the current period.

Pay rent in advance.

Pay dividends to stockholders in the current period.

Receive (but do not pay) a utility bill.

Use supplies previously purchased.

How many of these transactions result in an expense being reported in the current period using cash-basis accounting?

A) 1.

B) 2.

C) 3.

D) 4.

Answer: B