0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Is sales returns and allowance a current liability?
Sales returns and allowances is not a liability rather these are expenses or reduction in actual sales
If payment on a current liability?
Payment On Current Liability Debit The Current Liability (say Sundry Creditor) (Liability Decreases) Credit Cash Or Bank (Current Asset Decreases)
How is a liability increased by a credit or debit?
Liability has credit balance as normal balance so credit increases the liability which means addition to current liability will increase the overall liability and reduction in liability will reduce overall liability.
What does a credit balance on partner's current account mean?
current liability
Is Credit Sales a current Assets?
Yes, it is a current asset.
Where does sales tax payable on the balance sheet go?
Sales tax payable is a current liability and is presented on the credit side of the balance sheet-
Is sales commission a current liability or an expense?
If sales commission is payable in future time then it is current liability but if it is paid already then it is expense.
Is sales returns and allowance a current liability?
Sales returns and allowances is not a liability rather these are expenses or reduction in actual sales
If payment on a current liability?
Payment On Current Liability Debit The Current Liability (say Sundry Creditor) (Liability Decreases) Credit Cash Or Bank (Current Asset Decreases)
How is a liability increased by a credit or debit?
Liability has credit balance as normal balance so credit increases the liability which means addition to current liability will increase the overall liability and reduction in liability will reduce overall liability.
Is Cash Credit Loan a current Liability?
no
What does a credit balance on partner's current account mean?
current liability
Does sales tax payable have a normal credit balance?
All payable maintain a credit balance. A payable is a liability account and therefore like a liability does increase with a credit and decrease with a debit.
Is Credit Sales a current Assets?
Yes, it is a current asset.
What is the difference for account receivable and accounts payable?
When company make sales in credit it creates the accounts receivable while when company purchases on credit it creates the accounts payable so accounts receivable is current asset while accounts payable is current liability.
When a business sells an item and collects a state sales tax on it a current liability arises?
true.
Where does sales commission payable go on the multiple step income statement?
Sales commission payable is not part of income statement and it is shown in balance sheet as current liability in liability side of balance sheet.
