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Which type of account is prepaid expenses?
Prepaid expense is personal account in nature and default normal balance is debit balance and shown under current asset in asset side of balance sheet.
Is the normal balance side of a liability account the debit side?
Normal balance of all liabilities accounts are credit side while debit balance is of all expenses and assets.
Is Accumulated depreciation account is an expense account?
No. Accumulated Depreciation is a contra-account which appears on the asset side of the Balance Sheet. It is a credit balance account which reduces the value of Fixed Assets to reflect their declining value due to age and use. The normal offset to an entry to the Accumulated Depreciation account is a debit to Depreciation Expense.
Is expense account a debit or credit account?
Expense account is a debit account. So for example the expense is rent paid, so every year the rent expense increases and we record it in the debit side of the rent payable account and to complete the double entry, credit the same amount to the profit and loss account. Follow this basic rule to know which side your looking for: DAXP (debit side items), LICS (credit side items) D: drawings A:assets X:expenses P:purchases, L:liabilities I:income C:capital S:sales. So DAXP items increase in the debit side while LICS items increase in the credit side.
Unexpired expense should write in income statement or balance sheets?
Unexpired expense is current assets until used so it is part of assets of business and should be included in assets side of balance sheet.
Is expense a debit on the income statement?
All expenses have debit balance as normal accounting balance so all expenses shown on debit side of income statement.
Which type of account is prepaid expenses?
Prepaid expense is personal account in nature and default normal balance is debit balance and shown under current asset in asset side of balance sheet.
Where does amortization expense go on trial balance?
on the credit side
Is the normal balance side of a liability account the debit side?
Normal balance of all liabilities accounts are credit side while debit balance is of all expenses and assets.
Is Accumulated depreciation account is an expense account?
No. Accumulated Depreciation is a contra-account which appears on the asset side of the Balance Sheet. It is a credit balance account which reduces the value of Fixed Assets to reflect their declining value due to age and use. The normal offset to an entry to the Accumulated Depreciation account is a debit to Depreciation Expense.
Is expense account a debit or credit account?
Expense account is a debit account. So for example the expense is rent paid, so every year the rent expense increases and we record it in the debit side of the rent payable account and to complete the double entry, credit the same amount to the profit and loss account. Follow this basic rule to know which side your looking for: DAXP (debit side items), LICS (credit side items) D: drawings A:assets X:expenses P:purchases, L:liabilities I:income C:capital S:sales. So DAXP items increase in the debit side while LICS items increase in the credit side.
If an amount is recorded on the side of a T account opposite the normal balance side the account balance is?
decreased
Unexpired expense should write in income statement or balance sheets?
Unexpired expense is current assets until used so it is part of assets of business and should be included in assets side of balance sheet.
The normal balance of any account is the left side?
side which increases that account.
Does loan go under income statement as an expense?
No, it is a liability and goes on the right side of a balance sheet.
What happens if If an amount is recorded on the side of a T account the normal balance side?
decreased
What is prepaid expense and where is it reported in the financial statements?
Prepaid expense is that amount of expense which is paid in advance and expense is not actually incurred and prepaid expense is current assets of business and show under assets side of balances heet.
