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What would happen if you recorded a capital expenditure as a revenue expenditure?
Wiki User
∙ 14y ago
if you recored revenue expediture as capital expediture your profit will be decrease by that amount
Wiki User
∙ 14y ago
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What needs to happen in accounts receivables when a customer pays their account?
debit revenue and credit receibables
What is an adjusting entry?
journal entries recorded to update general ledger accounts at the end of a fiscal period. it is made to prevent or correct errors that may happen in the system. To see how to make an adjusting entry, visit: http://www.accounting7.com/content/exercise-adjusting-account-entries-accounting
What accounting principle requires revenue to be reported when earned?
In GAAP there are two basic accounting principles. The first being Accrual (which is the most commonly used) and the second being Cash Basis.Neither stipulate that income has to be "earned" before it is reported. The difference in the two are:Accrual basis accounting transactions are reported as they happen.1. For example, a contractor gets paid to remodel a home, he's received the money for the job, but hasn't earned it, completed the work. Accrual account states that this transaction be recorded as a liability (unearned revenue) to the company until the revenue is earned.2. Say the opposite is true in accrual accounting, the contractor finished the remodeling but isn't expected to be paid for it until later in the future. The company records this transaction as an asset (account receivable).Now let's look at Cash Basis: Cash basis states that a transaction didn't actually happen until such time the money is received, period. Take example 1, a transaction in cash basis accounting is recorded because money was actually received, even though it hasn't been earned.Example number 2 however, would be no recording of the transaction, although the job was finished, no money exchanged hands as of yet.This is why many businesses use accrual accounting. Only small companies that generally deal in cash or small amounts tend to lean toward cash basis accounting and it is still not recognized as a very good method of accounting by the GAAP.
Is rent collected in advance a temporary account?
The account that you would put this rent collection in is generaly called "Un-Earned Rent Revenue". At the end of the period, you have to close these accounts. So yes, it is a temporary account.A quick explanation why:- There are two main types of accounting:1. Accrual - expenses and revnues are recongisd when they ACTUALLY happen.2. Cash based - expenses and revenues are recognised when they are PAID.- Because of this there are "timing differences" which may occur, which can be classified as:1. Acrued revenue - rev. recognised BEFORE cash is received.2. Accrued expense - exp. recognised BEEFORE cash is paid.3. Deferred revenue - rev. recognised AFTER cash is received.4. Deferred expense - exp. recognised AFTER cash is paid.-In the case of our rent collected in advance, this is where you have collected the money for a service before you have given it. This unnearned revenue is a DEFERRED REVENUE which is a LIABILITY account.If you want more info - have a look at accountinginfo.com/study/accrual-101.htm
How do you write letter for bank manager lost money from ATM?
____________________________________ Improvement: ____________________________________ Dear Sir/Ma'am, I recently made a transaction at one of your branches ATM's, the ATM recorded the transaction but did not give me the money. I am very disappointed, and would ask that you look into this, so that my issue may be sorted and it will not happen to anyone else. Yours Sincerly,
What will happen if a video stores raises the price of a rental?
it will lose revenue
What will happen if a video store raises the price of a rental?
it will lose revenue
Profits will be maximized when marginal revenue?
Profits will be maximized when marginal revenue is equal to marginal costs. This will only happen in cases where there are fixed costs.
When did Capital Combat happen?
Capital Combat happened on 1990-05-19.
When did Great Capital Run happen?
Great Capital Run happened on 2008-07-20.
When did WWF Capital Carnage happen?
WWF Capital Carnage happened on 1998-12-06.
What needs to happen when a customer pays their account in account receivables?
debit revenue and credit receibables
What needs to happen in accounts receivables when a customer pays their account?
debit revenue and credit receibables
How do you compare recorded history with prehistory?
Recorded history is history that has already happened and prehistory is history that is about to happen.
Demand for movie rentals is highly elastic what will happen if a video store is the price for a rental?
b lose revenue
What happen to Chevy chase bank?
It was bought by Capital One Financial Corporation and merged into Capital One, N.A. in 2009
What is the capital city of sydney?
Sydney is a city, it does not have its own internal capital. Sydney does happen to be the capital city of New South Wales.
