What is an Accrued Expense? Accrued expense is a concept inaccrualaccounting that refers to expenses that are recognized when incurred but not yet paid. In some transactions, cash is not paid or earned yet when the revenues or expenses are incurred. For example, a company pays its February u...
Under the accrual method of accounting, an expense is a cost that is reported on the income statement for the period in which: The cost best matches the related revenues The cost is used up or expires There is uncertainty or difficulty in measuring the future benefit of the cost Examples of...
Open an account today and get a cash bonus up to $1,000*. Plus, access to 150 markets across 34 countries and the Zacks Rank Trading Tool. Open An Account View Disclosure Calculation of an Expense Ratio Most fund managers quickly point out the expense ratio so you don't have to calcu...
Definition of a Noncash Expense A noncash expense is an expense that is reported on the income statement of the current accounting period, but the related cash payment took place in another accounting period. Example of a Noncash Expense Perhaps the most common example of a noncash expense ...
If your IRA savings account is within a Roth IRA, then any contributions can’t be deducted from your income to reduce your annual taxable income. However, when you pull that money out in retirement, you won’t be required to pay taxes on the gains. You will also not be taxed on the...
Accounts receivable (AR) is money your customers owe you for products or services that you have sold. Find out why AR is important and how to track it.
To calculate your actual profits, you need to account for all of your expenses. So, subtract the total expenses from step 2 from your revenue. What do you have left? The remaining number is your gross profit. It can be alarming to see a negative gross profit. While it isn’t great ne...
Definition:An account is a record in an accounting system that tracks the financial activities of a specific asset, liability, equity, revenue, or expense. These records increase and decrease as thebusiness eventsoccur throughout the accounting period. Each individual account is stored in the genera...
Direct deposit electronically transfers money from your payroll bank account to the personal bank account of an employee. The transaction is instantaneous and most banks don’t charge for it. For these reasons, direct deposit has surpassed printed checks as the preferred method of payment. However,...
An operating expense is an expense that is related to a business’s core operations. Operating expenses (OPEX) are the first expenses shown on a company’s profit and loss statement. The amount left over after operating expenses have been deducted from gross revenue is known as operating income...