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What is the necessary expense rule three-part test is intended to?
justify the purpose of an expenditure
When did advertising costs become tax deductible?
When they became a ordinary and necessary expense of the business operation.
Are the expense accounts will be closed out after all the closing entires have been posted to the general ledger?
no, it is not necessary
What is the justification for debiting rent expence?
We debiting the rent expense because when expenses are incurred so the rule of double entry is to debit the expense account and increased liability....it is rules of GAAP.
What is the difference between cost and expense?
The difference between a cost and an expense lies on the matter of distinguishing and separately recognizing the used, utilized and expired portion of the cost, being that part is what we called an expense. An expense can also be described as a cost forgone since it is already been utilized and used. The expense is also recognized only in the income statement rather than in the balance sheet since utilization is recognized for a certain period of time. On the other hand, an unused or an unexpired cost is reported in the balance sheet as at a certain point of time. A costmight be an expense or it might be an asset. An expense is a cost that has expired or was necessary in order to earn revenues.
What concept was developed by the GAO to apply reasonable discretion an flexibilty?
necessary expense rule
What is the three-part test of that helps to justify the purpose of expenditures?
necessary expense rule
What is the necessary expense rule three-part test intended to do?
justify the purpose of an expenditure
The three part test of what helps to justify the purpose of expenditures?
necessary expense rule
What The three-part test of the helps to justify the purpose of expenditures.?
necessary expense rule
What is the necessary expense rule three-part test is intended to?
justify the purpose of an expenditure
What is three part test of the helps to justify the purpose of expenditures?
necessary expense rule
What is the three part test that helps to justify the purpose of expenditures?
necessary expense rule
What three part test did Government Accountability Office develope?
Necessary Expense Rule
What is the three part test to help to justify the purpose of expenditures?
necessary expense rule
What concept was developed by the gao to apply reasonable discretion and flexibility?
Necessary Expense Rule
What three part test did the Government Accountability Office develop?
Necessary Expense Rule
