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What else can I help you with?
Is Deferred income a current liability?
no
What is the difference of gross profit and gross margin?
Gross profit is the amount of profit in dollars...gross margin is the % profit to expenses
Is unearned rent a deferred liability?
If it has been prepaid by a customer and you show the cash related to this prepayment on your books, it is straight liability. You can think of this as something that you have but does not belong to you until you earn it. It is not deferred liability.
What type of account is Deferred Commissions?
Liability
Why would one need a deferred tax liability?
Deferred tax liability is necessary when a company's balance sheets fail to reflect what they are claiming on their tax returns. This can occur, for example, in cases of deferred payments from customers.
Why is unrealized gross profit considered a liability in the balance sheet?
Basically, unrealized gross profit is not an asset, liability, expense, revenue and owner equity. Because asset always record in DR side as a nature. Liability record on CR side but we don't have to pay any thing in unrealized gross profit. expense nature is DR revenue nature is CR but unrealized gross profit is expected to be an income after realizing. owner equity means to invest in business and unrealized gross profit is not an investment. So, we have to assume the unrealized gross profit as liability because it is mutually unearned. Unearned, it is an advance amount which is liability until we earned it. Similarly, unrealized is expected to be earned in future after collecting the installments of sales, as unearned is a part of liability so, unrealized gross profit is also a part of liability through unearned account.
How do yo record installment sales?
Follow the following steps: 1. Determine the cost of sales and the sale price and record accordingly by Debiting cost of sale and crediting inventory. Also, Debit Account receivable and credit Installment sales 2. Determine the gross profit percentage by subtracting the cost of sale form the sale price and then divide the sales price. 3. The answer derived from step b is called Deferred Gross Profit(If based on accrued accounting). Debit deferred gross profit(IS) and credit Deferred gross profit (BS). 4. when cash is received Debit Cash at Bank and Credit Account Receivable, do so until the Last payment is received. 5. Prepare closing entry for the year by debiting installment sales and credit cost of sales, Deferred gross profit(IF any) and Profit realized for the year Note: If all profit are realized then there will be no future recoverable amount left. That is, Deferred gross profit
Is Deferred income a current liability?
no
What is the difference of gross profit and gross margin?
Gross profit is the amount of profit in dollars...gross margin is the % profit to expenses
Is unearned rent a deferred liability?
If it has been prepaid by a customer and you show the cash related to this prepayment on your books, it is straight liability. You can think of this as something that you have but does not belong to you until you earn it. It is not deferred liability.
What type of account is Deferred Commissions?
Liability
Why would one need a deferred tax liability?
Deferred tax liability is necessary when a company's balance sheets fail to reflect what they are claiming on their tax returns. This can occur, for example, in cases of deferred payments from customers.
Is deferred revenue a current liability?
Yes, deferred revenue is a current liability. It means that the revenue has yet to be earned, therefore it is still owed to the business or company.
What is the difference between gross margin and gross profit?
Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Sales - Cost of Sales Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales.
Where is gross profit ratio found?
[Gross Profit Ratio = (Gross profit / Net sales) × 100]
What is the difference between operating profit and profit margin?
Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Sales - Cost of Sales Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales.
What is the difference between gross margin and profit margin?
Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Sales - Cost of Sales Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales.
