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How do you show how successfully your business performed during a period of time you would report its revenues and expense in the?
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What effect do revenues and expenses have on retained earnings?
Revenues Increase and Expense Decreases.
Net income will result during a time period when?
revenues exceed expenses.
What is the appropriate order for a company's chart of accounts?
assets, liabilities, stockholders' equity, revenues, expense
Distinguish between the two categories of adjusting entries and identify the types of adjustments applicable to each category?
Deferrals are either prepaid expenses or unearned revenues. Adjustments are made for deferrals to record the portion that represents either the expense incurred or the revenue earned. An adjustment for prepaid expenses increases an expense and decreases an asset account. An adjustment for unearned revenue increases a revenue account and decreases a liability account. Accruals are either accrued revenues or accrued expenses. Adjustments are made for accruals to record revenues from services performed that have yet to be collected. An adjustment for accrued revenues increases an asset account and increases a revenue account. An adjustment for accrued expenses increases an expense account and increases a liability account.
Which principle best describes the conceptual rationale for the method of matching depreciation expense with revenues?
Systematic and rational allocation
What effect do revenues and expenses have on retained earnings?
Revenues Increase and Expense Decreases.
Net income will result during a time period when?
revenues exceed expenses.
What are the major reasons for accrual accounting?
The accounting method under which revenues are recognized on the income statement when they are earned (rather than when the cash is received). The balance sheet is also affected at the time of the revenues by either an increase in Cash (if the service or sale was for cash), an increase in Accounts Receivable (if the service was performed on credit), or a decrease in Unearned Revenues (if the service was performed after the customer had paid in advance for the service).Under the accrual basis of accounting, expenses are matched with revenues on the income statement when the expenses expire or title has transferred to the buyer, rather than at the time when expenses are paid. The balance sheet is also affected at the time of the expense by a decrease in Cash (if the expense was paid for when it incurred), an increase in Accounts Payable (if the expense will be paid in the future), or a decrease in Prepaid Expenses (if the expense was paid in advance).
What are the three sections of a balance sheet?
the sections of a balance sheet is the expense, revenues, and the sales.
Distinguish between the two categories of adjusting entries and identify the types of adjustments applicable to each category?
Deferrals are either prepaid expenses or unearned revenues. Adjustments are made for deferrals to record the portion that represents either the expense incurred or the revenue earned. An adjustment for prepaid expenses increases an expense and decreases an asset account. An adjustment for unearned revenue increases a revenue account and decreases a liability account. Accruals are either accrued revenues or accrued expenses. Adjustments are made for accruals to record revenues from services performed that have yet to be collected. An adjustment for accrued revenues increases an asset account and increases a revenue account. An adjustment for accrued expenses increases an expense account and increases a liability account.
What is the appropriate order for a company's chart of accounts?
assets, liabilities, stockholders' equity, revenues, expense
Are health insurance premiums a business expense?
If you are paying them for your employees as part of their compensation package, yes, it is a business expense. If it is for yourself, no, it is not a business expense, but it is usually tax deductable under medical costs.
What is it called when you have more expense than profit?
It's not called anything. If by profit you mean revenues. Then it is called a loss.
Which principle best describes the conceptual rationale for the method of matching depreciation expense with revenues?
Systematic and rational allocation
Should an organizer or planner qualify as a business expense?
Wedding planning can be a business expense - it is the same as business or management consultation or production services.
What do you call money spent for business?
Business expense.
Is depreciation allowed a debit or credit?
Depreciation is expense and like all other expense it also has debit balance as default balance and all revenues has credit balance as default balance.
