When using the allowance method of accounting for uncollectible accounts, the entry to record the bad debts expense is a debit to Bad Debts Expense and a credit to Accounts Receivable. a. True b. False Sales Tax Payable is an asset account. a) True b) False Purchase of inventory on ac...
Fixed cost refers tothose costs incurred by the company during the accounting periodunder consideration that has to be paid no matter whether there is any production activity or the sale activity in the business or not and the examples of which includes rent payable, salaries payable, interest e...
notes payable should have a debit balance C. accounts payable should have a credit balance D. salaries expense should have a credit balance An asset account will normally have a: a. A debit balance b. There is no normal bala...
Categorization: Allocate the expense to the appropriate expense account to keep your financial statements accurate. This categorization helps in understanding how much is spent on different areas of your business. Acknowledgement of liability: By recording an account payable, you acknowledge a liability ...
certain proportion of the total wages, and is recognised as an expense. (two) the calculation of "three funds" in staff compensation; 1. employee benefits Employee welfare fee refers to the amount of money paid by enterprises in a certain proportion of wages, which is specially used...
The income statement provides an overview of a company’s financial performance by showing how much money the company generated from sales or services, and how much it spent on expenses like salaries, rent, and taxes. The difference between revenue and expenses is the company’s net income or...
Incurred Expense —expenses paid plus reserves for expenses to be paid. Which is not a expense? An expense decreases assets or increases liabilities. Typical business expenses include salaries, utilities, depreciation of capital assets, and interest expense for loans.The purchase of a capital asset ...
Chapter 1/ Lesson 21 91K Learn what accounts payable is by definition and its examples. Classify if it is an asset or a liability and be informed with the formula on how to calculate it. Explore our homework questions and answers library ...
Ordinary income is income earned by an entity or an individual that is taxable at marginal tax rates. It can include wages, salaries, tips, bonuses, commissions, rents, and royalties.1 Unearned income such as short-term capital gains, unqualified dividends, and interest income is also ordinary...
Salaries, tax refunds, investment redemptions, and government benefits are commonly paid through direct deposit. How Direct Deposit Works Direct deposit is a safe and convenient way to receive payment. Funds are deposited into a recipient's account directly through an electronic network. In order fo...