what are three subcomponents of expenses and liabilities
expenses
Liabilities
Net Income is revenue minus expenses. Assets minus liabilities is Net Worth.
Assets, expenses, and revenuesAssets, expenses, and retained earningsINCORRECTAssets, liabilities, and dividendsAssets, expenses, and dividendsCORRECT ANSWER
There are three... Lularis, Magnocel, and Medial Septal Area
Assets, Liabilities, Expenses, Income & Equity.
Accrued expenses are those expenses the benefit of which has already taken by the business but the payment is not yet cleared that's why it is the liability of business.
In case of Assets debit is positive which means increase in assets as well as for liabilities debit means reduction in liabilities but for expenses it is negative as it increases the expenses and reduces the profit
Accrued expenses are entered as liabilities in the general ledger. Debit expense and credit accrued liability.
Examples of business liabilities include loans, accounts payable, and accrued expenses. These liabilities represent money owed by the company to others. If a company has high levels of liabilities, it may struggle to meet its financial obligations, leading to cash flow problems, increased interest expenses, and potential bankruptcy. Managing liabilities effectively is crucial for maintaining a healthy financial position.
Wages Payable, or Payroll Liabilities. Also, classifies as Capital Expense.
Liabilities are debts owed to an outside party (creditor) such as a bank loan, a truck note, etc. Expenses are the cost of operating the business and affect the net income. Expenses include things such as utilities, supplies, insurance, rent, etc. While liabilities are listed on the balance sheet, expenses are not. Also, Liabilities decrease Owners Equity (Stockholders Equity) while Expense decrease Net Income.