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What type of account is insurance expense?
liability
When an expense is incurred but has not been paid it should be credited to which account?
When an expense is incurred but not yet paid, it should be credited to an expense account and debited to a liability account, typically called "Accounts Payable" or "Accrued Expenses." This reflects that the company has incurred an obligation to pay for the expense in the future. The expense is recognized in the period it was incurred, while the liability indicates the amount owed.
What is the difference between office supplies account and office supplies expense account?
Office supplies acct is an account that you book as payables and a offfice supplies expense account is a Liability Account on your Chart of accounts
The classification and normal balance of the supplies expense account is a or an?
liability with a credit balance
How do you record industrial funding fee transactions?
To record industrial funding fee transactions, first determine the nature of the transaction, whether it's an expense or a liability. If it's an expense, debit the appropriate expense account and credit cash or accounts payable. If it involves a liability, debit the cash or asset account received and credit a liability account for the funding fee. Ensure to document the transaction with relevant details for accurate financial reporting and compliance.
Is electricity a liability or asset?
Electricity expense is an expense account while accrued electricity payable is a liability account
What type of account is insurance expense?
liability
Why is outstanding expense is credited in outstanding expense account?
Because it is a liability for business
When an expense is incurred but has not been paid it should be credited to which account?
When an expense is incurred but not yet paid, it should be credited to an expense account and debited to a liability account, typically called "Accounts Payable" or "Accrued Expenses." This reflects that the company has incurred an obligation to pay for the expense in the future. The expense is recognized in the period it was incurred, while the liability indicates the amount owed.
What is the difference between office supplies account and office supplies expense account?
Office supplies acct is an account that you book as payables and a offfice supplies expense account is a Liability Account on your Chart of accounts
The classification and normal balance of the supplies expense account is a or an?
liability with a credit balance
Is salary expense liability?
Salary expense is not a liability - it is an expense; however, if salaries are accrued between periods, there will likely be a liability account named "Accrued Salaries" or "Salary Due."Associated with salaries; however, are various taxes. Those taxes are not necessarily submitted to government entities at the same time as the salary is paid to employees. There will likely be liability account(s) associated with those taxes.
Is depreciation expense an asset or liability?
Depreciation expense is neither an asset or liability. It is an expense.
What are accrued expenses reported on the balance sheet as?
As you accrue expenses, they show up as a CREDIT on the balance sheet, and a DEBIT on the income statement. Then as you actually incur the expense and pay out, you would CREDIT your cash account, and DEBIT the accrued liability account on the balance sheet. For example, if you expect to spend $12,000/year on business travelling expenses, you would accrue $1000 monthly as a CREDIT to your accrued liability account (on the balance sheet), then a DEBIT to the expense account (on the income statement). When you actually do incur the expense and pay out, you CREDIT your cash account, and DEBIT the accrued liability account. Thus, the accrued liability account is cleared out and eventually washed out to zero.
Is accrued expense a financial liability?
If you are doing adjusting entries, an accrued expense will affect a balance sheet account (payable) and an income statement account (expense). Such as accrued interest at the end of year would be: Interest Expense (Debit) Interest Payable (Credit)
How do you record industrial funding fee transactions?
To record industrial funding fee transactions, first determine the nature of the transaction, whether it's an expense or a liability. If it's an expense, debit the appropriate expense account and credit cash or accounts payable. If it involves a liability, debit the cash or asset account received and credit a liability account for the funding fee. Ensure to document the transaction with relevant details for accurate financial reporting and compliance.
How do you record a deferred payment?
To record a deferred payment, first, create a liability account to recognize the obligation to pay in the future. When the payment is initially recorded, you would debit the appropriate expense account and credit the deferred payment liability account. When the payment is made, you would debit the deferred payment liability account and credit cash or accounts payable. This ensures that the expense is recognized in the correct period while reflecting the liability until payment is completed.
