0
A credit card itself is considered a liability because it represents money that you owe to the credit card issuer. When you make purchases using a credit card, those purchases are recorded as expenses in your accounts. However, until you pay off the credit card balance, the total amount owed remains a liability on your financial statements.
What else can I help you with?
Is the balance on a credit card a liability or an expense?
The balance on a credit card is considered a liability because it represents money that you owe to the credit card issuer. It reflects the total amount of credit used but not yet paid back. In contrast, an expense is a cost incurred for goods or services consumed, which affects your income statement. Therefore, while the credit card balance may stem from expenses, the balance itself is classified as a liability on the balance sheet.
Is credit card fee expense a selling or administrative expense?
selling expense.
The classification and normal balance of the supplies expense account is a or an?
liability with a credit balance
When can you deduct expenses paid by credit card?
Presuming it is a deductible expense, they are reportable when paid by the credit card, or any other method.
Is land a credit or debit?
Debit - expense or asset Credit - income or liability As land is an asset, it is a debit entry with the credit being to Bank/Cash/Sellor of the land
Would extra payments made on a credit card be an asset liability income or expense?
liability
Can you deduct credit card interest as a business expense?
No, credit card interest cannot be deducted as a business expense.
Is credit card fee expense a selling or administrative expense?
selling expense.
Is The balance on a credit card is a liability?
Yes.... a credit card balance is money owed by the card-holder to the company. Therefore it is a liability.
The classification and normal balance of the supplies expense account is a or an?
liability with a credit balance
Are credit card discounts reported as operating expenses on an income statement?
a credit card discount would be a credit, not an expense.
Can an annual credit card fee be a prepaid expense?
yes
Is depreciation expense an asset or liability?
Depreciation expense is neither an asset or liability. It is an expense.
When can you deduct expenses paid by credit card?
Presuming it is a deductible expense, they are reportable when paid by the credit card, or any other method.
Incurred but unpaid expenses that are recorded during the adjusting process with a debit to an expense and a credit to a liability are?
An accrual.
Expenses incurred but unpaid that are recorded during the adjusting process with a debit to an expense and a credit to a liability are?
An accrual.
Is land a credit or debit?
Debit - expense or asset Credit - income or liability As land is an asset, it is a debit entry with the credit being to Bank/Cash/Sellor of the land
