true of false
Yes, the renovation of a leased office would typically be capitalized if it significantly enhances the value of the property, extends its useful life, or adapts it to a different use. This means that the costs incurred for the renovation would be recorded as an asset on the balance sheet rather than expensed immediately. However, if the renovation is merely for maintenance or repairs, those costs would generally be expensed in the period incurred. It's important to consider the specific lease terms and accounting policies applicable to the organization.
An accrued liability
TRUE
Yes, fees listed in a bank's account analysis statement should be recorded as expenses in a corporation's ledger. These fees represent costs incurred in managing the bank account and are typically classified under bank service charges or similar expense categories. Properly recording these fees ensures accurate financial reporting and helps in tracking the overall expenses of the corporation.
The authorized stock of a corporation is recorded in its corporate charter or articles of incorporation, which are filed with the state government. This document outlines the total number of shares that the corporation is authorized to issue. Additionally, the details about authorized stock are often reflected in the corporation's financial statements and internal records.
Expenses incurred but not yet paid or recorded are called accrued expenses.
An accrued liability
An accrued liability
An accrual.
TRUE
An accrual.
The authorized stock of a corporation is recorded in its corporate charter or articles of incorporation, which are filed with the state government. This document outlines the total number of shares that the corporation is authorized to issue. Additionally, the details about authorized stock are often reflected in the corporation's financial statements and internal records.
Freight out is typically recorded as a debit in accounting. It represents an expense incurred by a business for shipping products to customers. This expense reduces the company's net income, so it is recorded on the debit side of the income statement. In contrast, freight in (shipping costs incurred to receive goods) is recorded as an asset or part of inventory and is typically a debit as well.
Operating lease is that kind of lease which is not done for entire useful life of assets and only lease rental are paid and expensed through income statement.
The purpose of the preparation of adjusting entries is to ensure that revenues are being recorded during the period they are earned and expenses are being recorded during the period they are incurred.
Incurred Expenses also sometimes known as Accrued Expenses are expenses that a company incurs but has not yet paid. Unless the company in question uses Cash Basis Accounting, the transaction should be recorded immediately as a debit to the appropriate expense account and a credit to the appropriate payable account.It is an "unrecognized" expense until it is recorded, not necessarily paid.
Property taxes are typically accrued, meaning they are recorded as an expense when they are incurred, rather than prepaid in advance.