True
Prepaids and accruals. prepaid: the payment is made but the expense has not yet incurred. accrual: expense happened but not yet making payment. to illustrate how adjusting works, let's see an example: http://www.accounting7.com/content/exercise-adjusting-account-entries-accounting
yes
Prepaid expenses are those expenses which are paid already but actual expense is not incurred and when actual expense incurred adjusting entry required to adjust prepaids as in acrual accounting income and expense only recorded when they are actually occured when not when the cash are paid so cash payment is not important to be recognise for transaction occuring.
It depends on when the Accounting period too place. From2011 onward, it was reported as an Expense. Starting in 2012, bad debt expense is reported as a contra Revenue account.
We debiting the rent expense because when expenses are incurred so the rule of double entry is to debit the expense account and increased liability....it is rules of GAAP.
Prepaids and accruals. prepaid: the payment is made but the expense has not yet incurred. accrual: expense happened but not yet making payment. to illustrate how adjusting works, let's see an example: http://www.accounting7.com/content/exercise-adjusting-account-entries-accounting
No, in recording the adjusting entry for accrued taxes, one account is increased while the other account is increased. The accrued taxes payable account is increased to record the liability for the taxes that has been earned but not yet paid, and an expense account (such as taxes expense) is also increased to reflect the amount of taxes that has been incurred.
yes
An accrual.
An accrual.
The expense account will be debited and capital will be credited by the same ammount
Prepaid expenses are those expenses which are paid already but actual expense is not incurred and when actual expense incurred adjusting entry required to adjust prepaids as in acrual accounting income and expense only recorded when they are actually occured when not when the cash are paid so cash payment is not important to be recognise for transaction occuring.
interest expense
It depends on when the Accounting period too place. From2011 onward, it was reported as an Expense. Starting in 2012, bad debt expense is reported as a contra Revenue account.
If you are doing adjusting entries, an accrued expense will affect a balance sheet account (payable) and an income statement account (expense). Such as accrued interest at the end of year would be: Interest Expense (Debit) Interest Payable (Credit)
We debiting the rent expense because when expenses are incurred so the rule of double entry is to debit the expense account and increased liability....it is rules of GAAP.
Expenses which are incurred for the selling of product is called Selling Expenses while expenses incurred on administration of general day to day tasks are called administration expenses