0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Is preliminary expenses is a administrative expenses or selling expenses?
Preliminary expenses are neither administrative expenses nor selling expenses rather these are classified as other assets in balance sheet and amortized over period of life of business.
By matching revenues and expenses in the same period in which they incur?
By matching revenues and expenses in the same period in which they incur, net income or loss will be properly reported on the income statement.
If accounts payable have increased during a period will the expenses on an accural basis be less than expenses on a cash basis?
expenses on an accrual basis are greater than expenses on a cash basis
Difference between outstanding expenses and prepaid expenses?
Outstanding expenses are the expenses which have fallen due at the end of the accounting period but which has not been paid. Its a liability for the company and will be shown under the Current liabilities and provisions. Prepaid expenses are the expenses which paid during the year before its due. The money is paid out but its not due at the end of the period. Its an asset and will be shown under current Assets in the Balance sheet.
Prepaid expenses are eventually expected to?
Be expensed in the period that the in which they occur.
Is preliminary expenses is a administrative expenses or selling expenses?
Preliminary expenses are neither administrative expenses nor selling expenses rather these are classified as other assets in balance sheet and amortized over period of life of business.
What is the definition of fixed expenses?
Any expense that does not change from period to period, such as loan payments.
By matching revenues and expenses in the same period in which they incur?
By matching revenues and expenses in the same period in which they incur, net income or loss will be properly reported on the income statement.
If accounts payable have increased during a period will the expenses on an accural basis be less than expenses on a cash basis?
expenses on an accrual basis are greater than expenses on a cash basis
Difference between outstanding expenses and prepaid expenses?
Outstanding expenses are the expenses which have fallen due at the end of the accounting period but which has not been paid. Its a liability for the company and will be shown under the Current liabilities and provisions. Prepaid expenses are the expenses which paid during the year before its due. The money is paid out but its not due at the end of the period. Its an asset and will be shown under current Assets in the Balance sheet.
How do you catagorize the pre-operative expenses?
Pre operative expenses are categorized as preliminary expenses and shown as other assets in balance sheet and amortized over period.
Prepaid expenses are eventually expected to?
Be expensed in the period that the in which they occur.
Is utility expense an asset?
Expenses are always shown in income statement if expenses are already utilized but if expenses are paid already and are utilizable in future time period then they are asset.
The broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses is the?
The accruals concept, otherwise known as the matching concept as it's purpose is to match expenses and revenue to each other in the correct accounting period.
The amount of the purchases for a period is presented in the expenses section of the income statement?
The amount of the purchases for a period is presented in
Do revenue and expenses should be recorded in the same period to which they relate?
false
What principal allocates expenses to revenues in the proper period?
Matching Principal
