Income tax payable is calculated usinggenerally accepted accounting principles (GAAP), using the current tax rates in the jurisdictions where the organization is subject to tax. Businesses operating in the United States are subject to federal, state, and local tax laws. They must also follow the ...
In accounting, miscellaneous expense may refer to a general ledger account in which small, infrequent transaction amounts are recorded
What Are Tax Expense Deductions? Tax deductions refer to specific amounts you can subtract from your taxable income. Doing this allows you to reduce the total amount of taxes that you owe. You can do this by taking the standard deduction, which is a fixed amount. ...
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...
An Expense or Expenditure is a cost during a specific accounting period that occurs as a business’ or organization’s operating activities. It is the amount of money that any entity has to spend on something.In everyday English, the term refers to an outflow of money from a party to ...
A commissions expense is an account on an income statement that's generated using accrual accounting that shows how much was...
Under the accrual basis of accounting, insurance expense is the cost of insurance that has been incurred, has expired, or has been used up during the current accounting period for the nonmanufacturing functions of a business. A manufacturer will report on its income statement the insurance expense...
What Is Depreciation in Accounting? Depreciation records the gradual loss of value of an asset over time. The asset will eventually become less usable and efficient as time goes on and will be worth less as a result. Depreciation is recorded as an expense, typically over a period during which...
Financial accounting is a subdiscipline within accounting that helps organizations provide reporting related to three critical areas of a business: its assets and liabilities (balance sheet), its revenues and expenses (income statement), and its cash flo
a purchase will have to be made, the expense is not listed on the balance sheet until the money actually goes out. This allows for a real-time account of all of the tangible liquid assets. Because of the simplicity of cash accounting, it is often the preferred method for small businesses...