0
In the General Ledger, expense accounts are typically arranged in the income statement section, reflecting the costs incurred during a specific period, which ultimately impact net income. Liability accounts, on the other hand, are listed in the balance sheet section, representing obligations the company owes to external parties. While expense accounts are categorized as part of the equity calculation, liability accounts are considered part of the company's total liabilities. This arrangement helps in clearly distinguishing between operational costs and financial obligations.
What else can I help you with?
Are the accounts in general ledger always arranged in an alphabetical order?
The liability accounts and expense accounts are the only ones arranged alphabetically.
Is a compound entry in the general journal is made to close expense accounts?
A compound entry in a general journal is any entry that has more than one debit or credit value. A compound entry is used to close the expense accounts because you will need to credit all of the expense accounts, then debit either the Income Summary, or the Capital itself.
Are the expense accounts will be closed out after all the closing entires have been posted to the general ledger?
no, it is not necessary
What are two of the four accounts in the general ledger which need to be updated with adjusting entries?
cash and rent expense
What of the two of the four accounts in the general ledger which need to be updated with adjusting entries?
cash and rent expense
Are the accounts in general ledger always arranged in an alphabetical order?
The liability accounts and expense accounts are the only ones arranged alphabetically.
Are revenue and expense accounts real accounts?
No real accounts are for business possessions like assets and stock revenue and expense items are recorded in the nominal also named the general ledger. Personal accounts are for debtors and creditors accounts.
Is a compound entry in the general journal is made to close expense accounts?
A compound entry in a general journal is any entry that has more than one debit or credit value. A compound entry is used to close the expense accounts because you will need to credit all of the expense accounts, then debit either the Income Summary, or the Capital itself.
Are the expense accounts will be closed out after all the closing entires have been posted to the general ledger?
no, it is not necessary
What are two of the four accounts in the general ledger which need to be updated with adjusting entries?
cash and rent expense
What of the two of the four accounts in the general ledger which need to be updated with adjusting entries?
cash and rent expense
Does the revenue accounts come before the expense accounts in the general ledger?
Yes, in the general ledger, revenue accounts typically come before expense accounts. This arrangement reflects the flow of financial activity, as revenues are recorded first to show the income generated by the business, followed by expenses that represent the costs incurred in generating that income. This sequence helps in calculating net income or loss effectively.
What are the 2 type of quickbooks account?
The 2 types of QuickBooks accounts are "Balance Sheet" accounts and "Income and Expense" accounts. Balance sheet accounts can be used to create and add to chart of accounts. Income and expense accounts track income sources and the purpose of each expense.
Different names for bad debt expense?
Uncollectible Accounts Expense.
What is The general term employed to indicate an expense that has not been paid and has not yet been recognized in the accounts by a routine entry?
The general term for an expense that has not been paid and has not yet been recognized in the accounts is "accrued expense." Accrued expenses are recorded in the accounting period in which they are incurred, even if payment has not yet been made. This practice ensures that financial statements reflect all incurred liabilities, adhering to the accrual basis of accounting.
Is accounts payable a liability or an expense?
Accounts Payable is a liability. Accounts receivable is an asset.
What are the accounting journal entries to record an overcharged cost that was posted to an expense purchase to Accounts Payable and was paid at a later date?
general journal
