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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 are the differences between capital reserves and revenue reserves?
capital reserve is a type of account on a company's balance sheet that is reserved for longterm capital investment projects or any other large expenses that will be incurred in the future. capital reserve is a type of account on a company's balance sheet that is reserved for longterm capital investment projects or any other large expenses that will be incurred in the future.
What happens when a capital expenditure is treated as a revenue expenditure?
Expenses are overstated and assets are overstated
What happens when a capital expenditure is treated as revenue expenditure?
Expenses are overstated and assets are overstated
the excess of revenue over the expenses incurred in earning the revenue is called capital?
False
What would be journal entry to accrue the expenses?
Expences head a/c To, expences payble account
Where do you File warranties in bookeeping?
Companies must accrue estimated warranty expenses. The journal entry to accrue the expenses is a debit to warranty expense, and a credit to an accrued warranty liability account. When warranties are paid the debit is to the warranty liability account and the credit is to the cash or bank account.
Should you take out a student loan to pay for college expenses?
Not unless you have to, otherwise you are in debt as soon as you graduate and it must be repaid and will accrue interest forever. Not even a bk can erase a student loan.
If a person dies can the credit card account still accrue interest?
No, it should not continue to accrue interest.
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.
Is a major expense a capital improvement?
Capital Improvement is not an expense. Expenses are associated with expenses. Capital Improvements are increase in the assets. Example adding a new road. this is a very good question and it is also dumb
What is the difference between seed capital and startup capital?
Seed capital is for research and planning while startup capital is for operating expenses.
Is wages payable is an example of an expense?
Well, yes ...but, there are different kinds of expenses: operational expenses, such as a payroll are not the same as, say, capital expenses, such as buying a large piece of equipment. Capital expenses are writable (taken off taxes) while many operational expenses are not (marketing and advertising expenses, for example, are).-InThree21 (B.A. Business; maybe an MBA could have a better answer!)
What best states the difference between seed capital and startup capital?
Seed capital is for research and planning while startup capital is for operating expenses.
What are the 2 types of capital?
fixed capital : capital invested in the fixed assets of the business. such as buildings,machinery working capital: capital invested in the running of the business expenses and activities
Is a subscription a capital expense?
No, a subscription is considered an operating expense rather than a capital expense. Operating expenses are incurred in the day-to-day operations of a business, while capital expenses are investments in long-term assets like equipment or property.
What is ending capital?
Ending capital is the capital left after expenses have been deducted. Basically, you take your beginning capital, add your net income and deduct the withdrawals to determine your ending capital.
