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how mush expenses can be paid in cash to a person in a year
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What is the journal entry for prepaid expense when cash is not paid?
prepaid expenses are those expenses for which cash is paid in advance but if there is no cash payment then that is not prepaid expense and hence no entry required.
Where would Cash paid for equipment be reported in the statement of cash flows?
expenses
What is journal entry of preliminary expenses?
preliminary expenses account debit to cash account (if the amount has been paid in cash)
What would decrease stockholders' equity?
expenses paid with cash
What is journal entry of outstanding expenses paid?
[Debit] Outstanding expenses [Credit] Cash / bank
Does a decrease in prepaid expense increase or decrease cash flow?
Decrease in prepaid expenses increases the cash flow because if there is no prepaid expenses already in balance sheet then cash has to be paid to fulfill expenses but as there are prepaid expenses and company save cash that;s why it increases the cash flow.
What is cash based of accounting?
an accounting method in which income is recorded when cash received and expenses are recoreded when cash is paid out
How do you do an income statement if all expenses were collected in cash?
Do you mean that all expenses were PAID in cash? If so, you need to figure out how much cash went out (for the Expenses portion of the income statement) . For the cash outflow amount, you have to create a schedule of the vendors you paid and what goods and services you paid for. Use invoices and receipts and bank statements (for online payments you made). Then categorize the payments by type of expense.
How are the revenues and expenses reported on the income statement under the cash basis of accounting?
They are reported in the period in which cash is received or paid
What is an example of an asset use transaction?
RCS Paid $50,000 cash for operating expenses such as salaries, rent, and intrest. RCS Paid $4,000 cash in dividends to its owners.
Does an increase in accrued expenses increase cash flow?
Yes, Expenses done while payment not made is a reason for increase in cash flows because if cash is paid then there would be a reduction in cash while deferred it to future time has actually increase the cash flow for the time being.
Is asset is cash?
Cash is an asset because it is the most liquid asset that is owned by a company that can be used to paid expenses or current liabilities.
