The first recognizes the liability; accountants debit interest expense and credit interest payable. This entry may be done well in advance of actually paying the interest if necessary. The second entry is necessary when the interest comes due; the accountant will debit the associated interest ...
A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is a(n): A、Journal. B、Posting. C、Trial balance. D、Account. E、Chart of accounts. 你可能感兴趣的试题 单项选择题 在用EDTA滴定剂的络合滴定中,欲测定Al3+含量,应先加入过量的EDTA标准溶液...
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 an...
What are Interest Rate Options? What is Times Interest Earned? What are Payment Days? Discussion Comments WiseGeek, in your inbox Our latest articles, guides, and more, delivered daily. Subscribe
Accounts Payable is a liability account in which suppliers’ or vendors’ approved invoices are recorded. As a result, the balance in Accounts Payable should be a precise amount. Definition of Accrued Expenses Payable Accrued Expenses Payable is a liability account that records amounts that are owe...
Interest expense refers to the cost incurred by a company for borrowing money from external sources, such as loans, bonds, or lines of credit. It represents the interest payments made to the lenders in exchange for the use of their funds. Interest expense is a significant component of a comp...
aIf the difference between pension expense and actual funding is an accrued liability, the unpaid portion must be added back to income as an expense not requiring cash. If the amount funded exceeds pension expense, then net income must be reduced by that excess amount. 如果在退休金费用和实际资...
However, since the vendor has not yet been paid, this creates a liability. To maintain the double-entry balance, a credit entry is made under the “Accounts Payable” account. This shows the amount owed to the supplier for the goods or services acquired. These two entries, one debit and ...
paid. Thus, if a company issues a bond to the public, the company receives cash financing. However, when interest is paid tobondholders, the company is reducing its cash. And remember, although interest is a cash-out expense, it is reported as an operating activity—not a financing ...
Theinterestportion is the amount of the payment that gets applied as interest expense. This is often calculated as the outstanding loan balance multiplied by the interest rate attributable to this period's portion of the rate. For example, if a payment is owed monthly, this interest rate may ...