How do a liability of a CIP get recorded? Please Journalize.
Any increase is an credit for a liability
no
if one faills to record a liabilt your whole income and balance sheet goes out of place
account
No, a liability account is decreased with a debit, not a credit. In accounting, liabilities represent obligations, and to reduce them, you would record a debit entry. Conversely, credits increase liability accounts. Therefore, to decrease a liability, you would use a debit entry.
It's a contra-asset account to construction in process. It's used to record periodic billings on a construction project.
Yes, you are required to have liability insurance if you wish to open, and have licensed, a small construction business.
Any increase is an credit for a liability
Expense
Some insurance companies that offer construction liability insurance include Goodman Insurance and Progressive. You can learn more about these companies and their insurance plans at their official websites.
The best way to compare your interest rates with a competitor company is to go online to a construction liability website and put down your information vs your competitors.
on a declaration date
no
Contractors-SubContracted work-construction
From the American Institute of Architects, Record Drawings are construction drawings revised to show significant changes made during the construction process, usually based on marked-up prints, drawings, and other data furnished by the contractor or architect. This term is preferable to "as-built drawings."
result in a overstated net income
It depends on your record and who your insurance company is.