Indicate how the following account can be increased or decreased. | Account | Increase | Decrease | Salaries Expense | (debit or credit) | (debit or credit) Indicate how the following account can be increased or decreased. | A...
Indicate whether you would debit or credit the following account to increase the value: a. Prepaid Insurance b. Accrued Wages c. Salaries Expense d. Retained Earnings Which of the following would decrease the account? a) credit prepaid rent account b)...
Expenses are the costs your business incurs to keep operating. These would include expenses incurred as a part of its regular activities as well as the expenses involved in running the business. For example, the cost of salaries, the cost of advertising, or the cost of equipment purchases. A...
Expenses –Cost of Goods Sold, Salaries Expense, Insurance Expense Dividends –these are dividends that the company has declared and has, or will, pay to its stockholders Step 4: Combine your answer from Step 2 and Step 3 to find whether you DEBIT or CREDIT the account you identified in St...
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Expense Conversely, expense accounts reflect what a company needs to spend in order to do business. Some examples are rent for the physical office or offices, supplies, utilities, and salaries to all employees. Refer to the below chart to remember how debits and credits work in different accoun...
While it might sound like expenses are a negative (they are, after all, cutting into yourprofit margin), they actually aren’t. First of all, any expense you have is (hopefully) for the betterment of your business. Your salaries expense allows you to bring in the brightest people in your...
This income could be from the sales of goods or services, interest income, and income from investments. Expense The amount that indicates what a company must spend in order to operate is called the expense account. Rent for the office space, supplies, utilities, and employees’ salaries are ...
Expense accounts include cost of goods sold (COGS); selling, general, and administrative (SG&A) costs; and other operating or non-operating costs. Among COGS are raw materials and wages for production workers; SG&A expenses include rent, utilities, and staff salaries. Like assets, an expense ...
The bakery will debit the amount in the expense account as salaries paid are expenses. Moreover, as the amount goes in cash form, there will be a credit to the cash account. The journal entry will be as follows: Rules of Debit & Credit ...