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3 situations in which a cash payment would not involve recognition of an expense?
Wiki User
∙ 16y ago
Purchase of a fixed asset. Payment of a liability, loan or other debt. Payment of a dividend.
Wiki User
∙ 16y ago
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What is the difference between prepaid expense and advance payment?
Prepaid expense is a payment which relevant to services which expected to delivered in the next accounting period, while advance expense is an expense paid in advance for services expected to delivered in the current accounting period.
What happens if you fail to record payment of an expense in accounting?
It would appear as if the payment is still due.
What is the difference between prepaid rent and rent expense?
Prepaid rent is an asset and represents and advance payment for a future benefit Rent expense is an expense and is the expended portion of the rent consumed.
What is the journal entry for payment of accrued expense?
debit accrued expensescredit cash / bank
Is equipment rental an expense?
Yes if equipment is leased on rent then rental payment is expense through income statement of that specific fiscal year.
Which journal entry records payment for supplies?
The journal entry to record payment for supplies would involve crediting the cash account and debiting the supplies expense account.
Is a car payment a variable expense or liability?
A car is a variable expense having the following properties: Car payment ( fixed Expense) Maintenance and usage costs (variable) So in total it is a variable expense. A car payment is considered a liability.
Why prepaid expense are not expense?
it is because,we just doing a early payment for the future expense
What is the difference between prepaid expense and advance payment?
Prepaid expense is a payment which relevant to services which expected to delivered in the next accounting period, while advance expense is an expense paid in advance for services expected to delivered in the current accounting period.
What the difference between prepaid and accrued expense?
A prepaid expense is an expense you pay before you have incurred an obligation to pay it. Paying three months rent in advance is an example. Prepaid expenses are viewed as an asset on the balance sheet which is reduced as the expense is incurred. For example, every month in which rent falls due would be a reduction of your prepaid rent asset and a recognition of an expense equal to the amount of the reduction. Accrued expenses, on the other hand, are essentially the opposite. For example, assume you didn't prepay your rent. As the rent expense is incurred, a liability is created. After you actually make your payment, the liability is reduced by the amount of your payment.
What is the payment for the use of borrowed money?
Payment made for the use of borrowed money is called interest. Interest expense is shown on an income statement as a non-operating expense.
What happens if you fail to record payment of an expense in accounting?
It would appear as if the payment is still due.
What is journal entry for expense payment?
what is the entry for an excess payment from customer
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.
What are synonyms for expenditure?
spending, payment, expense, outgoings, cost
What is Payment made for the use of borrowed money called?
Payment made for the use of borrowed money is called interest. Interest expense is shown on an income statement as a non-operating expense.
What is a synonym for expense?
cost, charge, expenditure, payment, spending, outlay
