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For the first entry, yes, pretty much. If a company receives money from Income that is recorded as income and cash, cash being the asset account. If the company records the income as a recievable, meaning the customer hasn't paid yet, then the account would be an Accounts Receivable, also an asset account.
Though income is recorded on the Income Statement and not the Balance Sheet, the revenue from said income becomes an asset, adjusting entries later on the books will take care of anything else, such as merchandise, inventory, cost of goods sold (if a merchandising company) or other expenses related to said income.
What else can I help you with?
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 is the debit if you are crediting an asset account?
When you credit an asset account, you are decreasing its balance. To keep the accounting equation balanced, you must make a corresponding debit to another account. Typically, this debit would go to an expense, liability, or equity account, depending on the nature of the transaction. In essence, every credit to an asset requires a matching debit elsewhere in the ledger.
Can the asset revaluation reserve amortized or written off to the P and L every year?
No! the asset revaluation reserve equal to the amount of depreciation charged during the year on the revalued asset should to be transaferred to the Retained Earning.
Will Every MET will have a critical asset?
no
If you purchase fixture and fittings would you debit fixture and fittings credit bank?
Yes, when you purchase fixtures and fittings, you would debit the fixtures and fittings account to increase your asset balance, reflecting the addition of a new asset. Simultaneously, you would credit the bank account to decrease your cash or bank balance, indicating that you have spent money to acquire the asset. This transaction follows the double-entry accounting principle, where every debit has a corresponding credit.
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.
Is income statement an asset?
In the balance sheet net income is not treated as an asset, it is added to capital, however if one is to look a bit deeper into the the entire cycle net income would make up part of the current asset. Income from sales would increase your cash, bank of accounts receivables. Remember accounting is double entry and for every debit there must be a corresponding credit.
What is the debit if you are crediting an asset account?
When you credit an asset account, you are decreasing its balance. To keep the accounting equation balanced, you must make a corresponding debit to another account. Typically, this debit would go to an expense, liability, or equity account, depending on the nature of the transaction. In essence, every credit to an asset requires a matching debit elsewhere in the ledger.
Can the asset revaluation reserve amortized or written off to the P and L every year?
No! the asset revaluation reserve equal to the amount of depreciation charged during the year on the revalued asset should to be transaferred to the Retained Earning.
Will Every MET will have a critical asset?
no
Will Every MET have a critical asset?
No it will not.
If you purchase fixture and fittings would you debit fixture and fittings credit bank?
Yes, when you purchase fixtures and fittings, you would debit the fixtures and fittings account to increase your asset balance, reflecting the addition of a new asset. Simultaneously, you would credit the bank account to decrease your cash or bank balance, indicating that you have spent money to acquire the asset. This transaction follows the double-entry accounting principle, where every debit has a corresponding credit.
Rules of double-entry accounting?
The rules of the double entry state that " For every dr there must be a corresponding cr and for every cr there must be a corresponding dr "
Is there a bankruptcy estate if every asset is exempt?
Yes
For almost every right that a citizen has, _______.?
there is a corresponding responsibility (A+)
Is software considered a fixed asset?
if software is purchased and price is paid at once and used for many years then it is fixed asset but if you purchase a software and after that every year you need to renew the license of using that software then this lisence cost is current asset and price paid for purchasing software is fixed asset. For Example: software purchased for $1000 and lisence renew fee for every year is $100 then $1000 is fixed asset and $100 is current asset or revenue asset.
For almost every right a citizen has?
For almost every right a citizen has, there is a corresponding responsibility.
