Technically, the purchase of propane is not an expense. Depending on the business, the propane is an asset until it is used, resold, or included in a product that is sold. At that time it will become an expense. If the purchased propane is used relatively soon, accountants will usually ...
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...
The cost of goods sold is an important expense in a seller's income statement, and, in most cases, will be the largest expense. Why is it an expense? The short answer is because the companyexpendsthis amount to own (by buying or producing) this product. This article will further explai...
What is the purpose of the Income Summary account? What type of accounts normally have debit balances and credit balances? What are the two primary interrelationships between the balance sheet and the income statement? What type of account is prepaid 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 cost Examples of...
Cash accounting tends to be the simplest accounting method and can be used by businesses of all sizes. Accrual accounting: Businesses record transactions when a sale occurs or an expense is incurred, rather than when money changes hands. In this method, tax liability is incurred when the income...
A pension expense is any type of expense that an employer incurs while managing a pension plan for his or her employees. Expenses of this type are recorded in the accounting reports and records of the firm, with the different transactions often accounted for using the most appropriate accounting...
D. financial accounting and tax accounting systems 点击查看答案 第3题 When the perpetual inventory system is used, the inventory sold is debited to ( ) A. supplies expense B. cost of merchandise sold C. merchandise inventory D. sales 点击查看答案 第4题 The primary purpose of a stock spl...
In accounting, general and administrative expenses represent the necessary costs to maintain a company's daily operations and administer its business, but these costs are not directly attributable to the production of goods and services. Information on this type of expense is especially useful when ca...
Capital expenditures can help improve a company's operational efficiency and productivity and increase its revenue in the long term. But they often require a significant outlay of money and may also necessitate borrowing. For that reason, companies will typically perform acost-benefit analysisto ...