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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.
When a plant asset is acquired by issuance of common stock the cost of the plant asset is properly measured by the?
Type your answer here... par value of the stock
What is the Journal entrey for cost in excess of billing?
A journal entry for cost in excess of billing typically involves debiting a "Cost in Excess of Billing" account (an asset account) and crediting a corresponding "Revenue" or "Construction Revenue" account. This entry reflects the situation where expenses incurred on a project exceed the amount billed to the client, indicating that the company has incurred costs that will be recognized as revenue in the future. The entry ensures that financial statements accurately represent the company's assets and revenue recognition principles.
What is historical cost?
Historical cost is the cost of an item when it was originally acquired. Historical cost does not reflect the change of value over time that an asset undergoes.
Is depreciation expense used to allocate historical cost over the life of an asset?
Yes, depreciation account is used to allocate the cost of asset over the life of asset to income statement of the fiscal year where asset utilized to earn revenue.
Where do you hit the cost of removing a fully depreciated asset IE asset 5000.00 so retirement entry equals credit asset account and debit accumulated depreciation account what about 200 removal cost?
Journal entry for removal cost: Debit Removal cost 200 Credit Cash 200
What is the journal entry to write off a fully depreciated asset?
[Debit] Cash (if any) xxxx [Debit] Accumulated depreciation xxxx [Debit] Loss on disposal of asset (if any) xxxx [Credit] Asset account xxxx [Credit] Profit on disposal of asset(if any)xxxx
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 journal entries for disposal of fixed asset?
cr asset account for cost price dr accumulated depreciation for asset depreciation cr asset sale account dr/cr profit/loss on asset account
When a plant asset is acquired by issuance of common stock the cost of the plant asset is properly measured by the?
Type your answer here... par value of the stock
What is historical cost?
Historical cost is the cost of an item when it was originally acquired. Historical cost does not reflect the change of value over time that an asset undergoes.
What is the journal entry for capitalising development cost?
To capitalize development costs, debit the Development Costs asset account for the amount capitalized and credit the Cash or Accounts Payable account if payment was made. This allows the costs to be spread out over the useful life of the asset rather than expensing them immediately.
What is the journal entry in purchasing software?
The journal entry for purchasing software involves debiting the software asset account to reflect the cost of the software and crediting the cash or accounts payable account depending on the method of payment. This entry recognizes the increase in assets due to the software purchase and the corresponding decrease in cash or increase in liabilities.
What is accumulated depreciation on a statement of cash flow?
Accumulated depreciation is the amount of a long-term's asset's cost that has been allocated to depreciation since the time the asset was acquired.
Is depreciation expense used to allocate historical cost over the life of an asset?
Yes, depreciation account is used to allocate the cost of asset over the life of asset to income statement of the fiscal year where asset utilized to earn revenue.
The book value of an asset is the a market value of te asset b. portion of the asset's cost that has not yet been charged to expense c acquistion cost shown in the asset account less the estimated sa?
Option B is correct one and that is the portion of the asset;s cost that has not yet been charged to expense.
What is the purpose of depreciation expense and accumulated depreciation?
Depreciation expense reduce the cost of asset through income statement for the useful life of asset and accumulated depreciation account is contra account for asset account in balance sheet to show the total amount of depreciation charged.
