the asset method = record all purchases as asset then recognize expense (diff of beg bal & end bal)
dr. prepaid supply (purchase)
cr. cash
expense method = record all purchases as expense, then account for the ending balance. adjust beg balance to reflect end balance.
dr. supply expense
cr. cash
Sales is a revenue not an expense or asset while difference between sales and expense is profit which is liability for business.
An asset will have benefits extending into the next accounting period
Prepaid rent is an asset and represents and advance payment for a future benefit Rent expense is an expense and is the expended portion of the rent consumed.
An asset is a debit entry on the balance sheet. It represents a physical item of value, an intangible item of value such as goodwill, or a debtor to the business. An expense is a debit entry on the profit and loss account, and represents a cost to the business.
What is the difference between fixed asset and inventory
Sales is a revenue not an expense or asset while difference between sales and expense is profit which is liability for business.
An asset will have benefits extending into the next accounting period
Prepaid rent is an asset and represents and advance payment for a future benefit Rent expense is an expense and is the expended portion of the rent consumed.
An asset is a debit entry on the balance sheet. It represents a physical item of value, an intangible item of value such as goodwill, or a debtor to the business. An expense is a debit entry on the profit and loss account, and represents a cost to the business.
What is the difference between fixed asset and inventory
Depreciation expense is neither an asset or liability. It is an expense.
Book Value is the difference between the cost of an asset and the accumulated depreciation of that asset.
preliminary expense is the expense for fitting the asset or similar works, so this expenses capitalized.... and is called fixed asset
Transfer embodies every method of disposing of an asset, voluntary or involuntary. A sale is the voluntary transfer of an asset for consideration. You get something in return.
Expense
An expense is not an asset at all.
There is no similarity between the assets and expense only prepaid/expired expenses is consider our assets.