On the balance day, the accrued expense of utility is treated as a current liability (accounts payable or accrued expense) owed to the utility company, and an expense (Utility Expense) incurred by the company in February. In the reporting period of March, the company should record its cash ...
Accrued liabilities will only exist in your business structure when you are using anaccrual method of accounting. They require a debit to one of your expense accounts, and a credit to the accrued liability account. This is then reversed when you make a payment with a credit to the expense ...
An expense ratio measures how much you'll pay over the course of a year to own a fund, expressed as a percentage of your investments. An expense ratio is calculated by dividing a fund's operating expenses by its net assets. For example, if you have $5,000 invested in an ETF with an...
Department 1 could use 5-001-1 for its supplies expense while department 2 could use 5-0001-2 to differentiate it from the other departments.Example and TemplateHow to Use the Chart of AccountsThere are many different ways to structure a chart of accounts, but the important thing to ...
Many organizations structure their COAs so that expense information is separately compiled by department. Thus, the sales department, engineering department, and accounting department all have the same set of expense accounts. Examples of expense accounts include thecost of goods sold (COGS),depreciatio...
At the end of the year, all the temporary accounts must be closed or reset, so the beginning of the following year will have a clean balance to start with. In other words, revenue, expense, and withdrawal accounts always have a zero balance at the start of the year because they are al...
Factoring Expense [0.08×100,000] 8,000 Due from Factor 10,000 Accounts Receivable 100,000December 31, 20X5: The journal entries will differ under the two types of factoring. Since the actual bad debts exceed the amount initially retained by the factor, Impatient Inc must pay the factor...
When accounts payable, accrued expenses, and unearned revenue increase, they cause an increase in cash. At the bottom of the operating cash flow section, we can see the total, which is labeled as “Net cash provided by (used in) operating activities.” The line is the sum of all items ...
An example of a contra account (备抵账户) is: ( )A.Depreciation expense.B.Accounts receivable.C.Sales revenue.D.Accumulated depreciation.的答案是什么.用刷刷题APP,拍照搜索答疑.刷刷题(shuashuati.com)是专业的大学职业搜题找答案,刷题练习的工具.一键将文档转化
During the year before preparing the final statements of accounts, it decided to develop an accounting spreadsheet as an intermediate step. During the year, two adjustments were made, including the payment of rent of $1,500 in advance and the depreciation expense of $2,000. The unadjusted ...