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The entry to close the appropriate insurance account at the end of the accounting period is what?
Wiki User
∙ 9y ago
Insurance account is expense account and expense account is closed in income summary account. Insurance account should be credited where as income summary account should be debited
Wiki User
∙ 9y ago
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The entry to close the appropriate insurance account at the end of the accounting period isWhat?
debit Income Summary; credit Insurance Expense
Accounting period concept?
account period accounting period depends on the person carrying the business. Normaly it starts from 1st april. people may have calendar year as an accounting year.
What is the key accounting considerations relating to accounts payable are?
Determining their existence and ensuring that they are recorded in the appropriate accounting period
What are characteristics of final account?
Final accounts are closed accounts at the end of a period in accounting. Final accounts cannot be changed and represent the transactions in an accounting period.
Are prepaid expenses a nominal account?
Prepaid expenses are the part of nominal account expenses which are not used during the current accounting period. They cannot be charged to profit and loss account as per matching concept. They find place in balance sheet and written off in the next accounting period.
What is a sundry account?
A sundry account is a corporate account typically used for recording miscellaneous items for which an appropriate account has not yet been established. Sundry accounts are usually temporary or in-process accounts, meaning they must be cleared to a zero balance (total debits must equal total credits) at the end of each accounting period.
When should the loss an uncollectible account receivable be recorded as an expense for accrual accounting purposes?
In the same period in which the sale on account occurs.
Why you prepare profit and loss account?
as simple as that to know the net profit or loss from business in an accounting period. for more about financial accounting visit indianaccounting.blogspot.com
What are the journal entries that bring the account up to date at the end of the accounting period called?
closing entries
What do you mean by insurance coverage?
You have insurance coverage if you paid the premium required for that policy. The coverage will pay appropriate types of claims during the period of time of that policy.
What is accounting period concept?
Accounting period is the minimum time period for which comany prepare it's books of accounts.
The relationship between the amounts on the adjusted trial balance for an account and its ledger?
The adjusted trial balance reflects the balance of each account on the ledger. If there is a $1000 debit to Cash and a $200 credit to Cash in the same accounting period, the balance on the ledger will be $800 Cash. This $800 Cash balance will be reflected on the adjusted trial balance. In sum, the adjusted trial balance reflects the net of an account each accounting period.
