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Revenues from credit sales may be earned before they are collected in cash do you agree?
Wiki User
∙ 14y ago
Yes, if the product or service is rendered to the customer and said customer has not paid the amount, the revenue has been earned, not collected, to record this transaction you would Debit Accounts Receivable (to show that the service or product has been rendered) and Credit Revenue (income). Once payment is received, then to show money has been collected, you Debit Cash and Credit Accounts Receivable (you no longer have to touch your sales/revenue account as the amount is already listed as being earned).
Wiki User
∙ 14y ago
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Is interest earned a debit or credit?
All earnings and revenues has credit balance as normal balance so interest earned also has credit balance as default normal balance.
What is an accrual in accounting?
Generally, an accrual is either: 1. An expense you have incurred but have not yet paid. 2. A revenue you have earned but have not yet collected. Accruals are determined at the end of every accounting period (month end). You accrue expenses (Debit Expenses and Credit Payables). You accrue revenues (Debit Accounts Receivable and Credit Revenues) There is an excellent brief tutorial on accruals included with the ACCULATOR. The ACCULATOR (www.acculator.com) helps you solve your accounting homework problems.
How are revenues and expenses reported on the income statement under the accrual basis of accounting?
Revenues are reported on the income statement in the period in which they are earned.
What type of account is fees earned but not yet received?
Accrued Revenues.
Acrued revenues would appear on the balance sheet as what?
Accrued Revenues are those revenues which have earned by the company but not yet recieved. Accrued revenue is shown under current assets in balance sheet
Is interest earned a debit or credit?
All earnings and revenues has credit balance as normal balance so interest earned also has credit balance as default normal balance.
What accounts are affected when recording cash received from clients for fees earned?
Debit Cash and cash equivalents. Credit Revenues or Sales.
What is an accrual in accounting?
Generally, an accrual is either: 1. An expense you have incurred but have not yet paid. 2. A revenue you have earned but have not yet collected. Accruals are determined at the end of every accounting period (month end). You accrue expenses (Debit Expenses and Credit Payables). You accrue revenues (Debit Accounts Receivable and Credit Revenues) There is an excellent brief tutorial on accruals included with the ACCULATOR. The ACCULATOR (www.acculator.com) helps you solve your accounting homework problems.
What is an accrual account?
Generally, an accrual is either: 1. An expense you have incurred but have not yet paid. 2. A revenue you have earned but have not yet collected. Accruals are determined at the end of every accounting period (month end). You accrue expenses (Debit Expenses and Credit Payables). You accrue revenues (Debit Accounts Receivable and Credit Revenues) There is an excellent brief tutorial on accruals included with the ACCULATOR. The ACCULATOR (www.acculator.com) helps you solve your accounting homework problems.
The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is?
The matching principle
How are revenues and expenses reported on the income statement under the accrual basis of accounting?
Revenues are reported on the income statement in the period in which they are earned.
What type of account is fees earned but not yet received?
Accrued Revenues.
Acrued revenues would appear on the balance sheet as what?
Accrued Revenues are those revenues which have earned by the company but not yet recieved. Accrued revenue is shown under current assets in balance sheet
Are Cash Fees Earned Unearned Revenues considered nominal accounts?
yes
When is sales revenues usually considered earned?
Sales revenue are usually considered earned when "goods are transfered from the seller to the buyer".
When are sales revenues usually considered earned?
Sales revenues are considered earned revenue because it was generated work the busy working to sell their goods. Businesses that generate a profit bring in more revenue than they spend on producing their products.
Is earned income credit a nonrefundable credit?
EIC is a refundable credit.
