Accounting gives a business a way to keep track of its liabilities and expenses. In terms of liability vs. expense accounts, a liability refers to a financial obligation, or upcoming duty to pay. An expense refers to money spent by the company, or a cost incurred by the company, in...
To deduct an accrued expense, an accrual-basis taxpayer must satisfy an all-events test. The test has two prongs: Does the liability exist and, if so, can it be measured with reasonable accuracy? Legally a liability exists when it is final, fixed and absolute; that is, when the last ...
___is money received by an individual or company for a service or product that has yet to be provided or delivered. It is recorded on a company's balance sheet as a liability because it represents a debt owed to the customer.A.Accounts receivableB...
Bad Debt Expense is a/an ___ (asset/liability/etc.) account with a normal ___ balance. Closing entries: To complete the business cycle, closing entries are necessary to be recorded in the book of company. These accounting entries prepare the financial data of the company...
What is the employer's Social Security tax rate for 2024 and 2025? What is the difference between Social Security and Medicare payroll taxes? Is sales tax an expense or a liability? Related In-Depth Explanations Depreciation Mark the Question as Read Advance...
A.Decrease a liability; increase revenue.B.Increase an expense; increase a liability.C.Increase an expense; decrease a liability.D.Increase an asset; increase revenue.E.Increase an expense; decrease an asset.相关知识点: 试题来源: 解析 B 反馈...
Are utility bills an expense or a liability? What is a bill payable? How do you record a deposit on utilities? What are the methods for separating mixed costs into fixed and variable? What are accruals? Related In-Depth Explanations
To record this traction, you therefore has to Dr. Electricity Cr. Arued Expenses. The aount Arued Expense (i.e. expenses due and payable for the cost in this financial year) is shown as a current liability in the balance sheet as at 31 December, 2009 of the pany.,
True or False: The times-interest-earned ratio is calculated as EBIT divided by interest expense. Depreciation is an expense that reflects the cost of uncollectible receivables. A) True. B) False. Depreciation Expense will not appear on the post-closing trial balance. (Tr...
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