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Is Commission a revenue or an expense?
if Commission is received then it is revenue but if commission is paid then it is expense, if commission is receivable then it is asset while if it is payable then it is liability.
Is revenue an asset liability or owner's equity?
sales revenue is owner's equity
Is interest income an expense asset or liability?
Interest income is part of revenue.
Gain on sale of land is an asset or revenue?
It's a revenue. However, it's not a "Sales revenue", it's a "Other revenue".
What are head of accounts?
There are Five heads of Accounts: Asset, Expense, Liability, Capital, Revenue.
Is Commission a revenue or an expense?
if Commission is received then it is revenue but if commission is paid then it is expense, if commission is receivable then it is asset while if it is payable then it is liability.
Is revenue an asset liability or owner's equity?
sales revenue is owner's equity
Is interest income an expense asset or liability?
Interest income is part of revenue.
Gain on sale of land is an asset or revenue?
It's a revenue. However, it's not a "Sales revenue", it's a "Other revenue".
Is Purchase Discount revenue or expense?
Sales discount is not an expense account, but is also a deduction to an income statement. It is just a contra account of a revenue account particularly a sales revenue account.
What are head of accounts?
There are Five heads of Accounts: Asset, Expense, Liability, Capital, Revenue.
What are the five 5 accounting cycle defines?
cash expense revenue asset liabilites
Sales is an asset or liability?
there are Five basic account heads in accounting, which are given below:AssetsLiabilitiesCapital (Owners Equity)ExpenseRevenueand sales belongs to Revenue.If looking at the Accounting equation: Assets = Liabilities + Owners Equity.Capital, Expense and Revenue are all sub categories of Owners Equity. If sales is revenue then it would fall under Owners Equity.
Is sales an asset quity or liabitity?
Sales is not an asset, liability or equity account rather it is a revenue account and part of income statement rather balance sheet.
Is the purchase of a route a capital expense?
If route is purchased for one fiscal year then it is a revenue expense, but if route is purchased for morethan one year then first year purchase portion is revenue expense and remaining portion is long-term asset.
What is a Depreciation Expense in accounting?
Depreciation expense is the process of reducing the cost of fixed asset during the fiscal life of a long term asset through annual fixed amount of expense charged to profit and loss account of business in which that long term asset is utilized in business to generate revenue.
Why isn't purchase of fixed asset treated as expense in the period in which the purchase was made?
Answer:Even though cash has been spent on purchasing the fixed asset, accounting principles will prescribe that an asset needs to be recognized. This is an application of the matching principle, which states that cash expenditures need to be allocated as an expense in the period where they generate revenue. Suppose the fixed asset is a machine, which will be used to produce goods, which will be sold at a profit. The sales will be recorded as the products are sold during the economic lifetime. Hence, the purchase price of the fixed asset needs to be allocated (spread) over the economic lifetime as well. The expense is called depreciation expense.
