0
1. Prepaid Expenses:
These are those expenses, the payment of which has made by company in advance but the benefit or actual services has not yet received by the company that's why it is current asset of company for example prepaid rent.
Accrued Expenses:
These are those expenses the benefit of which has already received by company but payment has not yet made example is employees salaries which are accrued on last date of month and paid later.
Accounts Payable:
When company purchased goods from vendors on credit and payment is due in later time period this transaction creates the Accounts Payable till the actual payment is made to the vendors.
What else can I help you with?
Do accrued expense accounts have debit balance?
accrued expense has debit balance like all other expenses.
What is an expense that has not been paid and has not yet been recognized in the accounts by a routine entry?
accrued
The entry to adjust the accounts for wages accrued at the end of the accounting period is?
wages expense and wages payable
What is the Difference between account payable and accrued expense?
Accounts Payable are supported by invoices or billing statements. Accrued Expenses are expenses which relate to the current period; however, there is not an invoice on hand. For example, the company lawyer bills the company for his services on an invoice on the 15th of each month, you would post his invoice in Accounts Payable and accrue legal fees for the 16th to the end of the month.
What is the difference between outstanding expense and accrued expense?
I believe that Outstanding expense is an expense that has actually occured but not paid, but accrued expense is an expense which has been paid or may not be paid but the expense has not yet been accounted in books of accounts and hence, it is an estimated expense or an expense which is not yet been booked in our books and hence, we accrue the estimated expense in our books or we book the sum of actual expense and book it as an accrual for this period as there might be a case where the books have been closed for accounts payable but the books are still open for general ledger team to account the sum as an expense in the current period. The accrual will be normally reversed in the subsequent month and actual expenses will be booked. But in case of seasonal accounting the accruals are booked as a non-reversing entry in books and when the actual expense is known, the expense is booked and the accrual entry for the same will be reversed. Rajesh Rajagopalan
Do accrued expense accounts have debit balance?
accrued expense has debit balance like all other expenses.
What is an expense that has not been paid and has not yet been recognized in the accounts by a routine entry?
accrued
The entry to adjust the accounts for wages accrued at the end of the accounting period is?
wages expense and wages payable
What is the Difference between account payable and accrued expense?
Accounts Payable are supported by invoices or billing statements. Accrued Expenses are expenses which relate to the current period; however, there is not an invoice on hand. For example, the company lawyer bills the company for his services on an invoice on the 15th of each month, you would post his invoice in Accounts Payable and accrue legal fees for the 16th to the end of the month.
What is the difference between outstanding expense and accrued expense?
I believe that Outstanding expense is an expense that has actually occured but not paid, but accrued expense is an expense which has been paid or may not be paid but the expense has not yet been accounted in books of accounts and hence, it is an estimated expense or an expense which is not yet been booked in our books and hence, we accrue the estimated expense in our books or we book the sum of actual expense and book it as an accrual for this period as there might be a case where the books have been closed for accounts payable but the books are still open for general ledger team to account the sum as an expense in the current period. The accrual will be normally reversed in the subsequent month and actual expenses will be booked. But in case of seasonal accounting the accruals are booked as a non-reversing entry in books and when the actual expense is known, the expense is booked and the accrual entry for the same will be reversed. Rajesh Rajagopalan
What is the journal entry to record accrued interest expense?
Debit Accrued Interest Expense Credit Accrued Interest Payable
What are the examples of accrued expenses?
Accrued expense refers to an expense that has been incurred but not yet paid. Examples of accrued expense items might be interest that has accrued on an outstanding note that has not been paid, and taxes that have accrued but not yet been paid.
What is the accounting entry for Accrued Expense?
Dr. Accrued Expense Cr. Cash or Cash in bank
What is the journal entry for payment of accrued expense?
debit accrued expensescredit cash / bank
What is the difference between temporary accounts and permanent accounts?
Temporary accounts are like your revenue, expense, owner's drawing accounts and the income summary. Permanent accounts are like your assets, liability, and most of owner's equity accounts.
What are the correct ledger entries to record an accrual in the accounts?
To record an accrual in the accounts, you typically make two entries: a debit to an expense account and a credit to a liability account. For example, if you are accruing an expense of $1,000 for utilities, you would debit Utilities Expense for $1,000 and credit Accrued Liabilities (or Accounts Payable) for $1,000. This reflects the obligation to pay the expense in the future while recognizing the expense in the current period.
What is The general term employed to indicate an expense that has not been paid and has not yet been recognized in the accounts by a routine entry?
The general term for an expense that has not been paid and has not yet been recognized in the accounts is "accrued expense." Accrued expenses are recorded in the accounting period in which they are incurred, even if payment has not yet been made. This practice ensures that financial statements reflect all incurred liabilities, adhering to the accrual basis of accounting.
