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Prepaid expense is debit balance or credit balance in cash flow statement?
Wiki User
∙ 14y ago
Prepaid expense is a debit balance.... Explanation... increase in assets......debited decrease in assets ..........credited increase in liabilities ........credited decrease in liabilities..........debited Prepaids Expenses are current assets since future expenses have been covered. Accordingly, an increase to prepaid expenses is a debit.
Wiki User
∙ 14y ago
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What accounts will normally maintain a credit balance prepaid taxes interest income rent expense equipment?
Prepaid taxes and equipment are asset accounts, so would normally have a debit balance. Rent expense is an expense account, so would normally have a debit balance. Liability, equity, and income accounts normally have credit balances.
Is rent expense credit or debit?
As all expenses has debit balance as normal balance and rent is also expense then rent expense also has debit balance and shown in income statement as a reduction from revenue.
The account type and normal balance of prepaid expenses?
1. asset, debit 2. expense, debit 3. revenue, credit 4. liability, credit which one of them???
A balance of a prepaid expence account is normally DEBIT OR CREdit?
Prepaid Expenses would normally have a debit balance.
Is Depreciation Expense is reported on the balance sheet as an addition to the related asset?
No depreciation expense is recorded in the income statement. As you know though every debit needs a corresponding credit so for the amount of the debit to depreciation expense in the income statement there is a corresponding credit to accumulated depreciation in the balance sheet. Which is a reduction of a fixed asset or more of a contra account to the fixed asset account. So you'd have the fixed asset cost, a debit balance, and an accumulated depreciation account, a credit balance. These two accounts when combined represent your net book balance of your fixed assets.
What accounts will normally maintain a credit balance prepaid taxes interest income rent expense equipment?
Prepaid taxes and equipment are asset accounts, so would normally have a debit balance. Rent expense is an expense account, so would normally have a debit balance. Liability, equity, and income accounts normally have credit balances.
Is rent expense is credit?
As all expenses has debit balance as normal balance and rent is also expense then rent expense also has debit balance and shown in income statement as a reduction from revenue.
How do you book a Prepaid Expense?
[Debit] Prepaid Expense xxxxx [Credit] cash / bank xxxxx
Is rent expense credit or debit?
As all expenses has debit balance as normal balance and rent is also expense then rent expense also has debit balance and shown in income statement as a reduction from revenue.
The account type and normal balance of prepaid expenses?
1. asset, debit 2. expense, debit 3. revenue, credit 4. liability, credit which one of them???
Can an annual credit card fee be a prepaid expense?
yes
How is Interest Expense with a credit balance classified in the financial statements?
An Interest Expense with a credit balance is reclassified as Interest Payable on the Balance Sheet.
A balance of a prepaid expence account is normally DEBIT OR CREdit?
Prepaid Expenses would normally have a debit balance.
How is a prepaid expense recorded in accrual accounting?
[Debit] Prepaid Expenses xxxx [Credit] Cash / bank xxxx
Is Depreciation Expense is reported on the balance sheet as an addition to the related asset?
No depreciation expense is recorded in the income statement. As you know though every debit needs a corresponding credit so for the amount of the debit to depreciation expense in the income statement there is a corresponding credit to accumulated depreciation in the balance sheet. Which is a reduction of a fixed asset or more of a contra account to the fixed asset account. So you'd have the fixed asset cost, a debit balance, and an accumulated depreciation account, a credit balance. These two accounts when combined represent your net book balance of your fixed assets.
Which T-accounts follows the rules of debit and credit in relation to increases and decreases in the opposite manner?
Normal Balance Debit: (Asset, Expense, Dividend) Accounts Receivable Inventory Equipment Supplies Prepaid Rent Prepaid Insurance Cash Supplies Expense Depreciation Expense Rent Expense Salaries Expense Cost of Goods Sold Normal Balance Credit: (Liability, Shareholder Equity, Revenue, Retained Earnings) Accounts Payable Salaries Payable Accumulated Depreciation Retained Earnings Unearned Revenue Service Revenue Common Stock
Is depreciation allowed a debit or credit?
Depreciation is expense and like all other expense it also has debit balance as default balance and all revenues has credit balance as default balance.
