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When are prepaid expenses are reported on the income statement as expenses?
Wiki User
∙ 10y ago
Prepaid expenses do not go on the income statement as they are classified as assets. They are amortized over the time period being paid for.
Example: If you prepaid $600 dollars for 6 months rent. Then $100 dollars would be expensed each month and the remaining amount is reported on the the balance sheet.
Wiki User
∙ 14y ago
Wiki User
∙ 10y agoWhen actual benefits are taken by business at that time prepaid expenses are converted to expenses and at that time prepaid expenses are shown as expenses in income statement.
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Is audit prepaid expenses entry come in income statement?
Prepaid expenses are not part of income statements, in accrual accounting income and expenses are only shown in income statements when they are actually incurred.
How are revenues and expenses reported on the income statement under the accrual basis of accounting?
Revenues are reported on the income statement in the period in which they are earned.
Where does prepaid insurance go on the multiple-step income statement?
A prepaid expense such as insurance is an operating cost and thus would be recorded under operating expenses
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
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.
Where does travel go on income statement?
Travel expenses are expenses as all other normal business expenses and as all other business expenses are part of income statement traveling expenses are also part of income statement.
How does the contribution margin income statement differ from the income statement used in financial reporting?
Income statement in financial reporting is different in this sense that in that income statement all expenses and incomes are shown as incomes and expenses and there is no classification of fixed expenses or variable expense while in contribution margin income statement expenses are shown in this way that separate the fixed expenses from variable portion of expenses.
Does telephone go on the income statement?
No, telephone expenses do not go on the income statement. Telephone expenses would be recorded as an operating expense on the income statement under the category of "Communication expenses" or similar designation.
Are credit card discounts reported as operating expenses on an income statement?
a credit card discount would be a credit, not an expense.
Where is i reported in the financial statements?
Need more clarification: i = interest? (if expense: shown in income statement, under expenses. if revenue: shown in income statement, under revenues) i = investment? (is an asset, showin in the asset section of the balance sheet) i = income? ( shown in the income statement)
Is advertising on the income statement?
if advertisement expenses paid already and benefit is also taken already then it is an expense for business and all expenses comes in income statement.
Does Sales promotion expenses come in income statement?
All expenses comes in income statements same as sales promotion expenses are also shown in income statement.
