aDebiting the expense for the amount incurred but not yet processed does this. This credit will need to be allocated where it can be carried forward to the next accounting period as expense accrued, a current liability. 扣除费用为被招致,但不被处理的数额做此。 将需要分配这信用它可以被发扬到...
Is the Office Equipment account classified as an asset, a liability, an owner's equity, a revenue, or an expense account? State whether the normal balance is a debit or a credit. A contra-asset is: a. in reality a liability. b. an asset with a debit balance. c. ...
Is it appropriate to calculate depreciation using two different methods? Why or why not? Why is the accounting equation so important to accounting? Explain when to record depreciation expenses when a new asset is purchased. Explain why back depreciation is added back in the cash flow s...
On the other hand, an accrued expense is an event that has already occurred in which cash has not been a factor. Not only has the company already received the benefit, it still needs to remit payment. Therefore, it is literally the opposite of a prepayment; an accrual is the recognition ...
Wages payableis the line item that records how much money is owed to workers but not yet paid. When a wage expense is recorded it is a debit to the wage expenses account, which requires a credit to the wages payable account for the same amount until the wage is paid to the worker. ...
“Expenses may be in the form of actual cash payments (such as wages and salaries), a computed expired portion (depreciation) of an asset, or an amount taken out of earnings (such as bad debts).” Expense as a verb The term may also be used as a verb – however, it is not common...
Under the accrual basis of accounting, insurance expense is the cost of insurance that has been incurred, has expired, or has been used up during the current accounting period for the nonmanufacturing functions of a business. A manufacturer will report on its income statement the insurance expense...
Is Accumulated Depreciation an Asset or a Liability? Accumulated depreciation is recorded in a contra account, meaning it has a credit balance, which reduces the gross amount of the fixed asset. As such, it is not recorded as an asset or a liability. ...
Harold Averkamp, CPA, MBA Definition An expense that has occurred but the transaction has not been entered in the accounting records. Accordingly an adjusting entry is made to debit the appropriate expense account and to credit a liability account such as Accrued Expenses Payable or Accounts Payabl...
The reason that revenue and expense accounts are considered temporary is that they must be closed at the end of the year or sales period. In order to... Learn more about this topic: Temporary vs. Permanent Accounts | Differences & Examples ...