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Do you record cash when you receive it as revenue if you owe it to someone else?
Wiki User
∙ 14y ago
All companies owe someone somewhere, these are either in the manner of expenses or liabilities.
The question you are posing is too open. Exactly what "cash" did the company receive?
Cash received by a company from sales of goods, services rendered, etc are all recorded as revenue depending on the type of the company.
If the company owes a person money, that debt is recorded as either an expense payable or a liability payable, such as accounts payable.
The company has to record said income on their income statement and then reduce the income as needed for the expenses in reference.
Wiki User
∙ 14y ago
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Is it acceptable to record cash received in advance of providing products or services to revenue accounts?
Yes, the amount is also taxable at the moment you receive it.
How do you record an accounting entry services rendered on cash?
[Debit] Cash account [Credit] Services revenue
What is the journal entry to record sale of merchandise?
Debit accounts receivable / cash / bankCredit sales revenue
What will be the journal entry for Recorded revenue of 16000 in cash and 1200 on credit?
If we have a revenue of $16000, of which $1200 was on "credit" then we simply need to figure the amount of "cash" we received and then record the transaction to the Journal.$16000 (revenue) - $1200 (credit) = $14800 (cash)Cash (debit) $14800Account Receivable (debit) $1200Revenue (credit) $16000In double-entry accounting credits must equal debits.
What practice is when letting the expense follow the revenue?
This is the Accrual basis accounting method, which uses the matching principle (expenses following revenue) to record expenses when they are incurred, and revenue when it is earned (not on the date when cash is received or paid out).
Is it acceptable to record cash received in advance of providing products or services to revenue accounts?
Yes, the amount is also taxable at the moment you receive it.
What is the journal entry to record mortgage revenue?
debit cash / bank / accounts receivablecredit mortgage revenue
How do you record an accounting entry services rendered on cash?
[Debit] Cash account [Credit] Services revenue
Do you record cash as revenue if you owe it to someone else?
If you "owe" cash to someone else, then it is an amount you will have to pay out. This is a liability not an asset. Two main accounts record such transactions Accounts Payable Notes Payable Once paid it is recorded as an expense. If a person owes "you" the money, then it becomes an asset and goes in either Accounts Receivable or Notes Receivable Once received it is recorded as Revenue (or income)
How do you record restaurant sales in a journal entry?
Debit cash /bankCredit sales revenue
What methods of accounting is revenue recorded ONLY when cash is received?
The Cash Basis Accounting method is the method used to record income (revenue) ONLY when cash is received and expenses ONLY when cash is paid out. Cash Basis Accounting does not conform to the GAAP and is not considered a practical accounting method.
How much cash does the American Idol winner receive?
American Idol winners receive a record deal contract, the cash comes from CD's bought.
What is the journal entry to record sale of merchandise?
Debit accounts receivable / cash / bankCredit sales revenue
What effect does a decrease in unearned revenues have on cash flow statement?
Therefore, you record this deferred revenue as a cash inflow in the operating section. Specifically, you adjust cash generated from operating activities upward by the amount of the deferred revenue. ... Therefore, you must adjust the operating cash flow downward by the amount of this earned revenue.
What will be the journal entry for Recorded revenue of 16000 in cash and 1200 on credit?
If we have a revenue of $16000, of which $1200 was on "credit" then we simply need to figure the amount of "cash" we received and then record the transaction to the Journal.$16000 (revenue) - $1200 (credit) = $14800 (cash)Cash (debit) $14800Account Receivable (debit) $1200Revenue (credit) $16000In double-entry accounting credits must equal debits.
What practice is when letting the expense follow the revenue?
This is the Accrual basis accounting method, which uses the matching principle (expenses following revenue) to record expenses when they are incurred, and revenue when it is earned (not on the date when cash is received or paid out).
Is cash considered an asset or revenue?
Revenue
