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SG&A expenses are sales, general, and administrative expenses. They are company overhead costs that include recurring expenses like rent, office supplies, and salaries.
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What does the term essential expense mean in financial terms?
An essential expense is an expense that is necessary, for example rent or salary. It is something that cannot be gotten rid of or trimmed.
Is tithing an acceptable monthly expense when being considered for mortgage loan modification?
Is tithing an acceptable monthly expense when being considered for mortgage loan modification?
Is prepaid rent considered a monetary item?
Prepaid rent is monetary item, booked to the debit of the balance sheet account as an asset and expensed to the P&L through a monthly booking by crediting the balance sheet and debiting the P&L rent account ( recognising expense). It is important to prepare a schedule showing how you expense the prepayment till you get a zero balance at the end of period covered by the prepayment, that is when you must have charged the total amount to the P&L account. It is not good accounting practice to charge the total amount of prepaid rent to P&L account in one period. Cheers Ndimuh Cosmas
Is a Payment for a vehicle Loan Liability considered an Expense that would show up in my monthly expense report in my Quicken XG 2004?
Yes payment of loan liability is your expense decreasing the liability as well as asset from which you are paying the loan liability.
Revenue and expense accounts are considered temporary accounts because they?
they are temporary accounts because they are closed out at the end of each fiscal period.
Is paying rent considered a liability?
If rent is payable then it is liability for business but if rent is already paid then it is not liability but it is expense.
Is rent expense a liability?
rent is an expense while outstanding rent is a liability
Rent expense cost of sales?
Rent expense is considered an overhead cost, not a cost of sales since it does not directly relate to the merchandise you are selling. Any prepaid rent (such as at the beginning of the month) should receive a journal entry debit to an account called prepaid rent, and at the end of the month should be credited to rent expense. Hope this helps.
Is an increase in rent expense a credit?
Rent expense has a debit balance as a normal balance so increase in rent will be shown by debit to rent expense.
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.
Is rent expense an other expense?
If rent is paid for any activity which is directly related with the primary business activity then rent is not other expense, but if rent is paid for activity which is not directly related to primary business activity then it is other expense.
How is rent expense properly recorded?
Debit Rent Expense xxxx Credit Rent payable / cash /bank xxxx
Is rent expense is credit?
As all expenses has debit balance as normal balance and rent is also expense then rent expense also has debit balance and shown in income statement as a reduction from revenue.
What is a fixed expense?
A fixed expense is an expense that doesn't change, regardless of the activity level. For most companies, rent expense is fixed. No matter what the company's sales volume, rent expense stays the same.
Is rent expense credit or debit?
As all expenses has debit balance as normal balance and rent is also expense then rent expense also has debit balance and shown in income statement as a reduction from revenue.
Is rent an example of an fixed expense?
Yes normally rent is fixed expense and need to be paid even there is no production at all.
How should expenses be recorded?
How to correct misclassification of rent expense? It was recorded as rent expense, should have been recorded as prepaid rent with an effective tax rate of 30%.
