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Should investments be listed under expense or revenue in an income statement?
Wiki User
∙ 12y ago
The money that you invest should be counted as an expense. The income from your investment would be considered revenue.
Wiki User
∙ 12y ago
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What kind of expense is rent expense?
Rent expense is a Revenue expense and not a capital expense. It is a revenue expense because it recurs from year to year and is not an expense in purchasing a fixed asset. It is classified as a revenue expense also because it features in the income statement of each year and following the principle of accruals, the accountant must, make the necessary end of period adjustments to make sure that the the amount of rent expense that should have paid is charged against revenue and not just the actual cash paid.
Is a membership an intangible asset?
Membership paid out to a 3rd party is an expense and should be in the income statement. Membership income would be diferred income (a liability) until it can be recognised as revenue under IAS 18 then it'll be put in revenue within the income statement.
Where to post bad debt expense on income statement?
It should be posted under operating expense.
Is overhaul expenses of second hand machinery purchased are revenue expenses?
Overhaul expense on a second hand machinery is a capital expense, and should be added to the original cast of the asset.
How do you create a income statement using a unadjusted trial balance sheet?
It is important for all business owners and workers to understand how to create an income statement. In this instance you identify the revenue and expense on the unadjusted trial balance sheet. You should prepare two columns under net income then figure out the credit and debit balances. Then you add the three totals together. Subtract the revenue from the expenses to calculate the net income.
When revenue should be recognized on the income statement according to GAAP who is addressed?
business entity assumption
Unexpired expense should write in income statement or balance sheets?
Unexpired expense is current assets until used so it is part of assets of business and should be included in assets side of balance sheet.
What is the limit as to amount of representation expense that can be reported in the income statement of corporation in the Philippines?
There is no limit as to amount according to BIR, however, it should not exceed at .50% of the Reported Net Sales of the taxpayer in case of retail companies and at least 1% of the Net Revenue for firm involve in practicing their profession.
Company sells 100000 wrenches for 12 a unit. Fixed costs are 300000 and net income is 200000. What should be reported as variable expenses in the CVP income statement?
Sales revenue = 100000 * 12 = 1200000less:fixed cost = 300000net income = 200000Variable expense = 700000 (balance figure)
Why should accumulated depreciation be treated as expense?
It is treated as expense because it uses to allocate the related assets cost portion to profit and loss account due to usage of fixed assets for revenue generation in fiscal year.
What should rent be classified as on a balance sheet?
Rent is not a balance sheet account, it is an expense, hence an income statement account.
What accounts should be closed to income summary at the end of the fiscal?
All revenue and expense accounts should be closed to the income summary account, as shown:Revenue xxIncome Summary xxTo close revenue accounts.Income Summary xExpenses xTo close expense accounts.If the business is a merchandising company, the following transactions must also be recorded.Income Summary xxInventory xxTo close opening inventory.Inventory xxIncome Summary xxTo record ending inventory.Supplies Expense
