0
What else can I help you with?
A journal entry in order to fix your cash register and decrease the account balance?
Date: [Insert Date] Debit: Cash Register Repairs Expense $XXX Credit: Cash Register Asset $XXX This journal entry records the expense incurred for fixing the cash register, reducing the asset account balance to reflect the repairs made. It ensures that our financial records accurately represent the cash register's current value while acknowledging the associated costs.
What is the Difference between asset method and expense method?
the asset method = record all purchases as asset then recognize expense (diff of beg bal & end bal) dr. prepaid supply (purchase) cr. cash expense method = record all purchases as expense, then account for the ending balance. adjust beg balance to reflect end balance. dr. supply expense cr. cash
How does depreciation affect cash flow statement?
Depreciation does not effect cash flow statement as depreciation is not a cash expense rather it is just a treatement to dispose off the value of asset according to useful life of asset and the cost of asset is already shown in cash flow statement when asset is purchased.
What is the journal entry for the cash stolen from cash box?
Debit: Profit & Loss Account Credit: Cash In Hand or Petty Cash Nature of Debit is Expense and the nature of Credit is Asset. Expense Increased and Asset Decreased If you have an account already open for such Losses then you should debit such account. For example in my company Cash loss is usual Case so we have an Account titled "Cash Lost Expense" In my cash I will pass the entry as Debit: Cash Lost Expense Credit: Cash in Hand or Petty Cash
What are the five 5 accounting cycle defines?
cash expense revenue asset liabilites
A journal entry in order to fix your cash register and decrease the account balance?
Date: [Insert Date] Debit: Cash Register Repairs Expense $XXX Credit: Cash Register Asset $XXX This journal entry records the expense incurred for fixing the cash register, reducing the asset account balance to reflect the repairs made. It ensures that our financial records accurately represent the cash register's current value while acknowledging the associated costs.
What is the Difference between asset method and expense method?
the asset method = record all purchases as asset then recognize expense (diff of beg bal & end bal) dr. prepaid supply (purchase) cr. cash expense method = record all purchases as expense, then account for the ending balance. adjust beg balance to reflect end balance. dr. supply expense cr. cash
How does depreciation affect cash flow statement?
Depreciation does not effect cash flow statement as depreciation is not a cash expense rather it is just a treatement to dispose off the value of asset according to useful life of asset and the cost of asset is already shown in cash flow statement when asset is purchased.
What is the journal entry for the cash stolen from cash box?
Debit: Profit & Loss Account Credit: Cash In Hand or Petty Cash Nature of Debit is Expense and the nature of Credit is Asset. Expense Increased and Asset Decreased If you have an account already open for such Losses then you should debit such account. For example in my company Cash loss is usual Case so we have an Account titled "Cash Lost Expense" In my cash I will pass the entry as Debit: Cash Lost Expense Credit: Cash in Hand or Petty Cash
What are the five 5 accounting cycle defines?
cash expense revenue asset liabilites
Insurance an asset or expense?
Insurance is an expense, it should never be considered an asset. That is why cash-value policies are not recommended. Stick with simple term insurance and you will save money.
Is the deprecation expense on the income statement a non cash expense?
Correct. When a long-term tangible asset is purchased (e.g., property, plants and equipment), the Matching Principle under GAAP requires expenses to be systematically matched with the periods in which the corresponding revenues are generated. All depreciation expense does is systematically expense the asset over the period of its useful life. The useful life of the asset has nothing to do with when cash was actually paid for the asset.
How does cash flow accounting handle depreciation?
Depreciation is a non-cash expense that matches the income generated by an asset or its useful life. When creating a statement of cash flows depreciation expense is the first item added back in.
Why depreciation expense is not included in the cash flow statement?
Depreciation Expense, though called an expense, is not an expense where the company actually pays money out. The statement of cash flows deals with the company's "cash flow" in order for a manager to see where the company's cash is going to and coming from. Since depreciation expense doesn't involve actual cash flow, it would not affect the Cash account.
Is depreciation expense an asset or liability?
Depreciation expense is neither an asset or liability. It is an expense.
Is rent paid expense an asset or liability?
Rent paid is typically considered an expense rather than an asset or liability. When rent is paid, it reduces the cash account (an asset) and is recorded as an expense on the income statement, reflecting the cost of using the rented space during that period. However, if rent is paid in advance, it may be classified as a prepaid expense, which is considered a current asset until the rental period occurs.
When do you expense an asset?
preliminary expense is the expense for fitting the asset or similar works, so this expenses capitalized.... and is called fixed asset
