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Depreciation is differ in this sense that depreciation is not a direct expense like other expenses rather it is the allocation of fixed asset cost over useful life of asset to income statement.
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Define maintenance and other operating expenses?
Operating Expenses are expenses that are incurred while running a business. Maintenance Expense could be considered anything from the cost of maintaining a company vehicle to repairs made on a building or some other type of "maintenance" that is require by the business in order to function at 100%. Many expenses have their own account such as, Utilities Expense, Rent Expense, Insurance Expense, Interest Expense, Supply Expense, just to name a few. Other expense may not have a specific account in which to be recorded, such as Travel Expense, Food Expense (perhaps to entertain a possible client), these expense are often listed under "Other Expenses".
Do accrued expense accounts have debit balance?
accrued expense has debit balance like all other expenses.
If dividend income is 8500 and Interest Expense is 6250 what is the total for Other Revenues and Expenses?
1. Other revenue n expenses = dividend income - interest expese Other revenue and expense = 8500 - 6250 Other revenue = 2250
Is gas for your car considered a utility expense?
It is a transportation expense. A utility expense normally refers to expenses such as sewer, water, electricity, or any other expense that is reoccurring and necessary.
What does janitorial expense means?
It is the expense paid for glass clean. In other words, the expenses paid to professional to clean the outside building is called janitorial expense.
What is the difference between miscellaneous expense and other expenses?
Miscellaneous expenses means small sundry expenses of business while other expenses means expenses which are not directly related to the primary operations of business.
What is prepaid expense?
A prepaid expense is an account that a business might have to pay the traveling expenses of salesmen. The salesmen are given a certain amount for travel each week or month that can be used for meals and hotels and other travel expenses.
Nature of expenses and an function of expenses?
An expense is incurred when a business contract to purchase goods or accept services which will not constitute a resource for the future from which economic benefits can be expected to flow. In other words, an expense is a cost which is not classified as an asset to the business.
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 gross operating expense?
Gross operating expense is the total amount of money spent by a company to operate its business, including costs such as salaries, rent, utilities, supplies, and other day-to-day expenses. It does not include taxes or interest expenses.
What are the effects of depreciating currency on a country?
Depreciating currency in a country will determine how strong the current economy of a country is. If the currency drops then their economy is stronger and more investements are in while if the currency exchange is high, there is depreciating economy against other countries.
When should be the cost of product warranty included as an expense?
Just as with any other cost of doing business, When the expense is incurred in the course of production or service then those costs should be included in expenses.
