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Anything "payable" is a liability just like anything "receivable" is an asset.
Read the following, it will help you as well.
When you prepay your taxes for, let's say 2 years, it's called prepaid taxes and is recorded as an asset. However, at the end of year one or quarter (1,2,3,or 4), you have to record the amount of taxes you have already used up (it's called adjusting). Let's say you paid 10K for 2 years, you would expense 5k for year one (for quarters: quarter 1: 5k/4, quarter 2: quarter 1 + 5k/4, etc.)
I hope this helps.
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Is accounts payable a liability or an expense?
Accounts Payable is a liability. Accounts receivable is an asset.
What is meant by expenses payable?
Expense payable is a current liability.
Is notes payable an asset or a liability?
Accounts Payable and Notes Payable are liabilities. Accounts receivable - assets All "payable" accounts are "liabilities". This is because a liability is something the company OWES, a payable is the very same thing, hence the term "payable". Though some payable accounts change from being a payable to an expense, they are still liabilities as long as they are "payable", these include: Interest Payable (liability until paid, then reverts to Interest Expense) Salary or Wages Payable(liability until paid, then reverts to salary or wage expense) Payable accounts maintain a "credit" balance, meaning they increase with a Credit and Decrease with a debit. Now the quick answer: Payable = Liability Receivable = Asset
Is tax payable on income an expense?
Taxes are payable on income less expenses
Is FUTA taxes payable a current liability?
Yes, FUTA taxes payable is a current liability. Current liabilities are those that are due within one year.
Is accounts payable a liability or an expense?
Accounts Payable is a liability. Accounts receivable is an asset.
What is meant by expenses payable?
Expense payable is a current liability.
Is electricity a liability or asset?
Electricity expense is an expense account while accrued electricity payable is a liability account
Is notes payable an asset or a liability?
Accounts Payable and Notes Payable are liabilities. Accounts receivable - assets All "payable" accounts are "liabilities". This is because a liability is something the company OWES, a payable is the very same thing, hence the term "payable". Though some payable accounts change from being a payable to an expense, they are still liabilities as long as they are "payable", these include: Interest Payable (liability until paid, then reverts to Interest Expense) Salary or Wages Payable(liability until paid, then reverts to salary or wage expense) Payable accounts maintain a "credit" balance, meaning they increase with a Credit and Decrease with a debit. Now the quick answer: Payable = Liability Receivable = Asset
Is tax payable on income an expense?
Taxes are payable on income less expenses
Is it true that in recording the adjusting entry for accrued taxes both accounts involved are increased?
No, in recording the adjusting entry for accrued taxes, one account is increased while the other account is increased. The accrued taxes payable account is increased to record the liability for the taxes that has been earned but not yet paid, and an expense account (such as taxes expense) is also increased to reflect the amount of taxes that has been incurred.
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.
An excess of income taxes expense over income taxes payable for a period is associated with?
a credit to deferred income taxes payable
Is FUTA taxes payable a current liability?
Yes, FUTA taxes payable is a current liability. Current liabilities are those that are due within one year.
Is paying rent considered a liability?
If rent is payable then it is liability for business but if rent is already paid then it is not liability but it is expense.
Is salaries payable an expense?
Salaries payable is a out standing expenses for time being its show as a liability account.
Is income tax a current liability or an expense?
Accrued income tax (Income Tax Payable) is a current liability. When the tax is actually paid it is reported on the income statement as Income Tax Expense.
