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What is Promotion expenses is it an expense or current liability?
it is Administative Expenses And Indirect Expenses
Expenses that have been incurred but not recorded in the accounts?
Expenses incurred but not yet paid or recorded are called accrued expenses.
What is the difference between liability and expense?
Liabilities are debts owed to an outside party (creditor) such as a bank loan, a truck note, etc. Expenses are the cost of operating the business and affect the net income. Expenses include things such as utilities, supplies, insurance, rent, etc. While liabilities are listed on the balance sheet, expenses are not. Also, Liabilities decrease Owners Equity (Stockholders Equity) while Expense decrease Net Income.
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.
Is purchases a liability in accounting?
In accounting, purchases themselves are not classified as liabilities; instead, they represent expenses or assets depending on the nature of the purchase. When goods are bought for resale, they are recorded as inventory (an asset) until sold. If the purchase is made on credit, the amount owed becomes a liability, recorded as accounts payable. Thus, while purchases can lead to liabilities, they are not liabilities by definition.
Is supplies expense a liability or asset?
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.
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.
Are Fixture and fittings an expenses or liability?
expenses
What is Promotion expenses is it an expense or current liability?
it is Administative Expenses And Indirect Expenses
Are prepaid expenses an asset liability or equity?
NO! Prepaid expenses are assets!!
What is the journal entry of supplies used?
[Debit] Supplies expenses [Credit] Supplies Inventory
Expenses that have been incurred but not recorded in the accounts?
Expenses incurred but not yet paid or recorded are called accrued expenses.
Are cleaning supplies an asset or liability?
supplies that are owned owned = asset = asset
Is supplies expense an asset or liability?
Supplies expense is not classified as an asset or a liability; it is an expense on the income statement. When supplies are purchased, they are recorded as an asset (supplies inventory) and then expensed when used. Thus, supplies expense reflects the cost associated with using the supplies during a specific period.
Journal entry supplies used 200?
debit supplies expenses 200credit supplies inventory 200
Is interest expenses an asset or a liability?
In accounting, interest and other expenses are neither; they are a contra-equity account. This means that as expenses increase, the owners have less equity. Expenses should normally be treated as a debit account, so as you record interest expenses, you should be crediting either an asset or a liability at the same time.
What is meant by expenses payable?
Expense payable is a current liability.
