Accrued revenue Revenue has been earned but not yet recorded in the accounting system. Credit revenue, debit account receivable/cash Unbilled revenue Revenue has been earned but not yet invoiced. Credit revenue, debit unbilled receivable…Then when you bill, credit unbilled receivable and debit accoun...
2 【单选题】 (2分) If accrued salaries were not recorded on December 31, how would the account balances be affected? () A.Assets are overstated, equities are understated. B.Liabilities are overstated, equities are understated. C.Liabilities are understated, equities are overstated. D.Assets...
6. The difference between the balance of a fixed asset account and the balance of its related accumulated depreciation account is termed the book value of the asset. 7. If the adjustment for accrued salaries at the end of the period is inadvertently omitted, both liabilities and owner’s ...
DateAccountDebitCredit Jan 31 Insurance Expense $1,000 Prepaid Insurance $1,000 Accrued salaries and wages You use accrued salaries and wages when employees work in one accounting period but don't get paid until the following accounting period. For example, say your employees earn $3,000 in...
5. Are Prepaid Expenses a Credit or Debit? 6. What is the Effect of Prepaid Expenses on Financial Statements? 7. Why Can't Prepaid Expenses be Deducted Straight Away? 8. Does it Make Sense to Prepay and Expense? 9. What is Prepaid Expense vs Accrued Expense? 10. The Bottom Line What...
Accrued salaries refers tothe amount of liability remaining at the end of a reporting period for salaries that have been earned by employees but not yet paid to them. ... The accrued salaries entry is a debit to the compensation (or salaries) expense account, and a credit to the accrued ...
Examples of accrued expenses include interest, payroll, utilities, etc. #4. Do Expenses Have a Credit or Debit Balance? Expenses are almost always debited because they cause the owner’s equity to decrease, which has a normal credit balance. ...
Payout:Salaries can be paid out by cash, check, or bank transfer. Typically, employers deposit salaries directly into an employee’s bank account. Once payroll is processed, a company needs to ensure its bank account has enough funds to make salary payments. ...
Salaries are not paid to employees until the end of the payment period. At the end of each recording period, a company should properly estimate the dollar amount for each of its accrued expenses, and then record it as an expense account with a corresponding payable/accrued expense liability. ...
Does an income account have a normal debit or credit balance? What is the type of account and normal balance of allowance for doubtful accounts? (a) Contra asset, debit; (b) Asset, debit; (c) Liability, credit; (d) Contra asset, credit ...