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In accounting the term capital assets refers to an asset that is usually held for the purpose of contributing to earnings for a business over a long period of time.
Month end closing of the accounts is a process of resetting the income and expenditures balances to $0 to begin the next accounting period. To to this, we DR or CR income and expenditures to the profit and loss statement, allowing for the income and expenditure account balances to be reset.
Deferred tax assets are when its determined that the company will have positive accounting income during the fiscal period. After that, the deferred tax assets can be applied.
Non-current assets need to be revaluated. Tangible assets expected to be used for more than one accounting period. It is valuation getting depreciates. Therefore the accounting report base on only current value will be useless in the future.
Adjusting Entries are journal entries that are made at the end of the accounting period, to adjust expenses and revenues to the accounting period where they actually occurred. Generally speaking, they are adjustments based on reality, not on a source document. This is in sharp contrast to entries during the accounting period (such as utility bills or fees for services rendered) that depend on source documents.
In accounting the term capital assets refers to an asset that is usually held for the purpose of contributing to earnings for a business over a long period of time.
Capital expenditure means an amount spent to acquire or upgrade productive assets (such as buildings, machinery and equipment, vehicles) in order to increase the capacity or efficiency of a company for more than one accounting period. Also called capital spending.
Month end closing of the accounts is a process of resetting the income and expenditures balances to $0 to begin the next accounting period. To to this, we DR or CR income and expenditures to the profit and loss statement, allowing for the income and expenditure account balances to be reset.
Deferred tax assets are when its determined that the company will have positive accounting income during the fiscal period. After that, the deferred tax assets can be applied.
Non-current assets need to be revaluated. Tangible assets expected to be used for more than one accounting period. It is valuation getting depreciates. Therefore the accounting report base on only current value will be useless in the future.
Some assets will become costs in a future period such as Inventory and Prepaid Expenses. Fixed Assets will be depreciated in future periods. However, assets such as Cash and Accounts Receivable do not represent future expenses.
Adjusting Entries are journal entries that are made at the end of the accounting period, to adjust expenses and revenues to the accounting period where they actually occurred. Generally speaking, they are adjustments based on reality, not on a source document. This is in sharp contrast to entries during the accounting period (such as utility bills or fees for services rendered) that depend on source documents.
An application of accrual accounting is the notation of expenses as opposed to revenue earned in the same period. Revenue is only shown when it is realized or expected. In accrual accounting assets minus liabilities equals revenue.
Plant assets are long-lived assets acquired for use in the business and not for resale to customers. The matching principle of accounting requires that we include in the plant and equipment accounts those costs that will provide services over a period of years. During these years, the use of the plant assets contributes to the earning of revenues. The cost of a plant asset includes all expenditures reasonable and necessary in acquiring the asset and placing it in a position and condition for use in the operations of the business.
Adjusting Entries are journal entries that are made at the end of the accounting period, to adjust expenses and revenues to the accounting period where they actually occurred. Generally speaking, they are adjustments based on reality, not on a source document. This is in sharp contrast to entries during the accounting period (such as utility bills or fees for services rendered) that depend on source documents.
There are quite a few measures of internal control for fixed assets. Insurance coverage for asset exposure, correct depreciation calculated and applied after each period, tax reports filed for each jurisdiction, and approval process for Capital Expenditures.
This is adjusting entry for Accrued Expenses in the current accounting period, where you debit adjusting entry on expenses (Utility Expenses) account and credit adjusting entry on liabilities (Utilities Payable) account.