Definition of Expense 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 culture of the green train reflects not only the speed but also the warmth of China's development.To have an in-depth understanding of it as well as feel the warmth and charm of unique Chinese culture, it is genuinely hoped that t...
What is manual bookkeeping? What is a base year in accounting? What are debits and credits in bookkeeping? Explain how to do accounting journal entries. What is a draw in accounting? What is the journal entry for a utility expense of $150 that has not been billed yet, but has been us...
In accounting, miscellaneous expense may refer to a general ledger account in which small, infrequent transaction amounts are recorded. The account Miscellaneous Expenses should be used as the last resort. For example, the small bank fees would be better recorded in a separate account such as Ban...
One common denominator linking expense centers in various companies is the fact that they are usually one of the very first departments or services to be withdrawn, scaled down, or even shut down completely in the event of any financial crisis within the organization. The reason for such an ac...
This is where accrued expenses come into play. Since the business uses the accrual basis of accounting, expenses are recorded when they happen. That means that the firm needsto accrue the utility expensefor the end of January. You might be wondering: how can that be done without an actual ...
In terms of accounting, what is realized gross profit? Realized Profit: Realized profit is a part of the profit that has been converted in the form of cash. The profit calculated as per the financial statements is calculated on an accrual basis is named paper profit. Thus, that part of th...
A profit and loss (P&L) statement, also known as an income statement, is a financial statement that shows a company’s revenues and expenses for a given period.
The generally accepted accounting principles (GAAP) define an asset as impaired when its fair value is lower than its book value. To check an asset for impairment, the total profit, cash flow, or other benefit expected to be generated by the asset is compared with its current book value. I...
An invoice is a time-stamped commercial document that itemizes and records a transaction between a buyer and a seller. If goods or services were purchased on credit, the invoice usually specifies the terms of the deal and provides information on the available payment methods. Types of invoices ...