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Salary expense is not a liability - it is an expense; however, if salaries are accrued between periods, there will likely be a liability account named "Accrued Salaries" or "Salary Due."
Associated with salaries; however, are various taxes. Those taxes are not necessarily submitted to government entities at the same time as the salary is paid to employees. There will likely be liability account(s) associated with those taxes.
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Is salary an expense?
Yes. No , Its not a Expense. Its an Asset.
What is Promotion expenses is it an expense or current liability?
it is Administative Expenses And Indirect Expenses
What happens if an accrued liability for salaries is not recorded?
If an accrued liability is not recorded, then it is not a liability on the balance sheet. Not sure if the employee's could sue - that's a legal question - but if it was paid at a later date then it would be an expense at the time the liability was paid. If you mean to ask - what happens if an accrued liability for salaries is not paid, or is not timely paid - then the IRS can deny the deduction.
What are accrued expenses reported on the balance sheet as?
As you accrue expenses, they show up as a CREDIT on the balance sheet, and a DEBIT on the income statement. Then as you actually incur the expense and pay out, you would CREDIT your cash account, and DEBIT the accrued liability account on the balance sheet. For example, if you expect to spend $12,000/year on business travelling expenses, you would accrue $1000 monthly as a CREDIT to your accrued liability account (on the balance sheet), then a DEBIT to the expense account (on the income statement). When you actually do incur the expense and pay out, you CREDIT your cash account, and DEBIT the accrued liability account. Thus, the accrued liability account is cleared out and eventually washed out to zero.
When do you expense an asset?
preliminary expense is the expense for fitting the asset or similar works, so this expenses capitalized.... and is called fixed asset
Is salary paid asset or liability?
It's neither assets nor liability if a salary is already paid, it's called expense. But a salary before the payment would be called liability and after the payment it is going to be called an expense
Is depreciation expense an asset or liability?
Depreciation expense is neither an asset or liability. It is an expense.
Is rent expense a liability?
rent is an expense while outstanding rent is a liability
How do you realize liabilities?
if any entry is at credit side in liability o/s salary,o/s expense and fund is written.
Is a drawing account an expense or liability?
an expense
Is salary current asset to company?
A salary would be something you would pay an employee, therefore it would be something the company owes, making it a liability when it is recorded but not paid, an expense when it is paid.
Is salary payable a asset or liability?
The key word is "payable". This makes salary payable a liability until it is fully paid. There are two entries for a Salary Payable, the original Journal Entry to record when the payable occurs and the Adjusting Entry to record when the balance is paid. Entry to record: Salary Expense (debit) $$$ Salary Payable (credit) $$$ Entry to pay: Salary Payable (debit) $$$ Cash (credit) $$$ yes
Are salaries considered a liability?
If an accrual is made for salaries before they are paid, that accrual would be a balance sheet (the other side of the transaction would be your salary expense). When the salaries have been paid, the liability is reduced.
Is a Payment for a vehicle Loan Liability considered an Expense that would show up in my monthly expense report in my Quicken XG 2004?
Yes payment of loan liability is your expense decreasing the liability as well as asset from which you are paying the loan liability.
Is electricity a liability or asset?
Electricity expense is an expense account while accrued electricity payable is a liability account
Is salary an expense?
Yes. No , Its not a Expense. Its an Asset.
Is expense a asset or liability?
Supplies expense is neither an asset nor a liability it is an expense. Prepaid supplies would be an example of an asset and as the supplies are used they become expenses, supplies expense.
