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the asset method = record all purchases as asset then recognize expense (diff of beg bal & end bal)
dr. prepaid supply (purchase)
cr. cash
expense method = record all purchases as expense, then account for the ending balance. adjust beg balance to reflect end balance.
dr. supply expense
cr. cash
What else can I help you with?
Is sales revenue an expense or asset?
Sales is a revenue not an expense or asset while difference between sales and expense is profit which is liability for business.
What is the difference between an expense and an asset?
An asset will have benefits extending into the next accounting period
What is the difference between prepaid rent and rent expense?
Prepaid rent is an asset and represents and advance payment for a future benefit Rent expense is an expense and is the expended portion of the rent consumed.
What is difference between an asset and an expense?
An asset is a debit entry on the balance sheet. It represents a physical item of value, an intangible item of value such as goodwill, or a debtor to the business. An expense is a debit entry on the profit and loss account, and represents a cost to the business.
What is the difference between the straight-line method of depreciation and the accelerated methods?
The straight-line method of depreciation allocates an equal expense amount over an asset's useful life, providing a consistent annual depreciation expense. In contrast, accelerated methods, such as double declining balance, allow for higher depreciation expenses in the earlier years of an asset's life, reflecting a more rapid loss of value. This results in lower taxable income in the initial years and higher expenses later on. The choice between these methods depends on financial strategy and the nature of the asset's usage.
Is sales revenue an expense or asset?
Sales is a revenue not an expense or asset while difference between sales and expense is profit which is liability for business.
What is the difference between an expense and an asset?
An asset will have benefits extending into the next accounting period
What is the different between straight line method and reducing balance method result?
The straight line method calculates the depreciation of an asset for a specific period of time, while reducing balance method calculates the depreciation for a provisional rate of an asset.
What is the difference between prepaid rent and rent expense?
Prepaid rent is an asset and represents and advance payment for a future benefit Rent expense is an expense and is the expended portion of the rent consumed.
What is difference between an asset and an expense?
An asset is a debit entry on the balance sheet. It represents a physical item of value, an intangible item of value such as goodwill, or a debtor to the business. An expense is a debit entry on the profit and loss account, and represents a cost to the business.
What is the difference between the straight-line method of depreciation and the accelerated methods?
The straight-line method of depreciation allocates an equal expense amount over an asset's useful life, providing a consistent annual depreciation expense. In contrast, accelerated methods, such as double declining balance, allow for higher depreciation expenses in the earlier years of an asset's life, reflecting a more rapid loss of value. This results in lower taxable income in the initial years and higher expenses later on. The choice between these methods depends on financial strategy and the nature of the asset's usage.
What is difference between fixed asset and inventory?
What is the difference between fixed asset and inventory
The difference between the cost of an asset and the accumulated depreciation for that asset is called?
Book Value is the difference between the cost of an asset and the accumulated depreciation of that asset.
Is depreciation expense an asset or liability?
Depreciation expense is neither an asset or liability. It is an expense.
What is the difference between transfer and sale?
Transfer embodies every method of disposing of an asset, voluntary or involuntary. A sale is the voluntary transfer of an asset for consideration. You get something in return.
When do you expense an asset?
preliminary expense is the expense for fitting the asset or similar works, so this expenses capitalized.... and is called fixed asset
What is similar with asset and an expense?
There is no similarity between the assets and expense only prepaid/expired expenses is consider our assets.
