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In accounting, interest and other expenses are neither; they are a contra-equity account. This means that as expenses increase, the owners have less equity.
Expenses should normally be treated as a debit account, so as you record interest expenses, you should be crediting either an asset or a liability at the same time.
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How can you say overdraft is an asset?
An overdraft is an asset for the bank because it is money that they will receive with interest. From the customers point of view, an overdraft is a liability because we have to repay the money with interest. Overdraft accounts offer easy cash but at high interest rates. As you are going to return the money including any fees/interest, it will always be a liability for you as the customer.
Are wages expenses an asset or liability?
Neither, it is an expense, a negative entry in the company´s Profit and Loss, thus decreasing its Equity position.
Is a bank loan an asset or liability?
It Depends:If you are the bank, then the loan is an asset because, the loan customer is going to repay you the loan amount with interest and you are going to earn an income from it.If you are the loan customer, then the loan is a liability because you are going to return the money along with interest to the bank that gave you the loan.
Is depreciation expense an asset or liability?
Depreciation expense is neither an asset or liability. It is an expense.
Is loans to staff an asset or liability?
it is an asset
Is interest payable a asset or liability?
liability
Are prepaid expenses an asset liability or equity?
NO! Prepaid expenses are assets!!
Interest paid on loan to buy an asset-asset or liability or expense?
Loan acquired to buy an asset is a liability of business so interest incurred on that loan is also part of that loan and that's why it is also the liability of business.
Is expenses owing a current liability or a current asset?
expense owing is a current asset
Is interest payable a current asset?
No it is a current liability
Is expense a asset or liability?
Supplies expense is neither an asset nor a liability it is an expense. Prepaid supplies would be an example of an asset and as the supplies are used they become expenses, supplies expense.
Is interest income an expense asset or liability?
Interest income is part of revenue.
Are prepaid expenses a liability?
No. They are listed as a debit on the asset side of the Balance Sheet.
Is supplies expense a liability or asset?
Supplies expense is neither an asset nor a liability it is an expense. Prepaid supplies would be an example of an asset and as the supplies are used they become expenses, supplies expense.
What is general expenses and whether it is asset or liability?
Answer:The income statements shows the breakdown of the expenses. The various main expense items of operating income are: cost of revenues/goods sold, R&D expenses, sales and marketing expenses. All other expenses are general expenses (administrative, overhead, etc). General expenses, just like any other expenses, are neither an asset, nor a liability.General expenses can be the result of a decline in the value of an asset (payment of cash, depreciation of value of an asset), or an increase in a liability (electricity bills payable, etc).
Is interest received in advance considered asset or liability?
Interest received in advance is liability of business till the time it is actually earned by business.
What is net liability?
Asset - Liability = Net Asset / Liability * Net Asset - When Asset is more than Liability * Net Liability - When Liability is more than Asset
