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Revenue and expense accounts are considered temporary accounts because they?
Wiki User
∙ 13y ago
they are temporary accounts because they are closed out at the end of each fiscal period.
Wiki User
∙ 13y ago
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Is a bank loan a temporary account?
Yes, it can be considered a temporary account because the account would be open only until you are repaying the loan. The day you finish off all your dues, the account would be closed.
Why are saving accounts not subject to the fed reserve requirements?
savings accounts are not subject to the Fed's reserve requirements because savings accounts are not as liquid as checking accounts.
How is Saga Savings different from other savings accounts?
The saga saving is different from the saving accounts because the saving accounts has no 1% increase every year. It is also one of the most popular accounts because it doesn't have any restrictions at all.
Why is the total revenue curve in perfect competition an upward sloping straight line?
because each additional good sold bring in a constant amount of total revenue
Britain looked to the colonies as a source of revenue because it wanted?
To repay a large debt :)
Are revenue and expense accounts temporary?
The balances in all temporary accounts are transferred to the capital or the retained earnings account, leaving the temporary accounts with zero balances. This procedure is necessary to determine a periodic net income (or loss) and prepare books for the next period.
Is the account sales returns and allowances closed out to income summary?
It would be closed to this summary. This is because they are considered a form of contra revenue accounts.
Is notes payable a permanent account?
Any account on the balance sheet is a permanent account - 'Cash', 'Accounts Receivable', 'Accounts Payable'. Income and expense accounts are temporary accounts because they are closed at the end of an accounting period. Examples are: 'Service Revenue', 'Office Expense', and, my personal favourite, 'Meetings and Entertainment Expense'.
What accounts do not appear on the balance sheet worksheet?
The most common ones are Revenue (income) and Expenses. These accounts are closed out (because they are temporary) and affect the Net Income which in turn affects Retained Earnings, which is listed on the Balance Sheet. To try and explain "why" is because temporary accounts are used to figure either Net Profit or Net loss. They are closed out leaving them with a balance of $0. At the end of the period in which we choose (usually monthly for income) we We close out our expense accounts in order to figure our monthly Net Profit or Loss. Revenue and Expenses affect only our Income Statement and our Statement of Retained Earnings.
What to debit after increasinf accounts receivable?
the debit will be to the accounts receivable because a debit increases it. the offset account in this entry is usually a revenue account. so therefore a credit to revenue.
What is accounts payable considered on trial balance?
Accounts payable is a liability. All payable accounts are considered a liability because it is something you owe another person/company.
Why are income statement accounts called temporary accounts?
All items in income statements are temporary accounts because at the year end all close to income summary account and transfer to balance sheet in shape of profit or loss to be income statement starts with zero from next year.
Is Accounts Payable considered a debit on the Trial Balance?
No, it is a Credit because Accounts payable is a Liability account.
A London dispersion force is considered a dipole-dipole force because?
Because it is the result of a temporary dipole
True or false revenue and expense accounts must be closed out because their balances apply to only one accounting period?
True
Why sale of assets is known as revenue and sale of goods is not?
The sale of assets is considered revenue because it represents the income generated from the disposal of resources that were previously held by the business, such as land, buildings, or equipment. On the other hand, the sale of goods is not considered revenue because it is part of a company's regular operating activities and represents the core business activity of selling products or services. Revenue from the sale of goods is typically categorized as sales or product revenue.
Is there unearned revenue in accrual accounting?
Yes unearned revenue is only available in accrual accounting because in cash accounting sales is considered as sales as soon as cash is received.
