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What is the total amount spent on the software expense category for the current fiscal year?
The total amount spent on software expenses for the current fiscal year is 500,000.
Is Unexpired insurance for the fiscal period represents asset expense?
Unexpired insurance for the fiscal period is considered an asset, specifically a prepaid expense, rather than an expense. This is because it represents a payment made for insurance coverage that extends beyond the current accounting period, providing future economic benefits. As time passes and the coverage period elapses, the prepaid insurance will then be recognized as an expense in the income statement.
What is a Depreciation Expense in accounting?
Depreciation expense is the process of reducing the cost of fixed asset during the fiscal life of a long term asset through annual fixed amount of expense charged to profit and loss account of business in which that long term asset is utilized in business to generate revenue.
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 common stock a current asset?
If a common stock of other entity is purchased with the intentions to resale in current fiscal period then it is current asset. Otherwise, if it is purchased with the intention to retain for more than one fiscal year then it is long term asset.
What is the total amount spent on the software expense category for the current fiscal year?
The total amount spent on software expenses for the current fiscal year is 500,000.
Is wages current liabilitys or non current liabilitys?
If wages already paid then it is current expense, if wages are payable within current fiscal year then it is current liabilities, if wages are payable in morethan one fiscal year that the amount payable in current fiscal year is current liability and the remaining amount will be treated as long term liability.
How do current assets differ from the current liabilities?
Current assets are different from current liabilities in this sense that current assets are usable in current fiscal year to generate revenue while current liabilities are all those amount or items which are already used in current fiscal year and amount is still payable in current year.
Is Unexpired insurance for the fiscal period represents asset expense?
Unexpired insurance for the fiscal period is considered an asset, specifically a prepaid expense, rather than an expense. This is because it represents a payment made for insurance coverage that extends beyond the current accounting period, providing future economic benefits. As time passes and the coverage period elapses, the prepaid insurance will then be recognized as an expense in the income statement.
What is a Current liability on the balance sheet?
Current liability is that amount which is payable by company within one fiscal year and the amount payable to creditors or other third parties.
Why is prepaid expense classified as an assset on the balance sheet?
This has to do with the matching principle of accounting.Example: A company has a December 31 year-end, but its rental agreement on a building stipulates that a full year of rent must be paid by the company on December 1 of each year. The payment will cover rent on the building from December 1, 20X1 to November 31, 20X2. The rental payment is $120,000 per year.If the company expenses the full $120,000 payment in its December 31, 20X1 fiscal year, it will be recording an expense for a payment that it will benefit from in the future (access to the rented premises). Instead, 1/12 of the amount is expensed in the current fiscal year (representing use of the premises during December), and the remaining amount is recorded as an asset (Prepaid Expense), because the company will receive a future benefit from it, and it would be incorrect to expense the entire amount in the 20X1 fiscal year.
What is inventory on the balance sheet?
Inventory is that amount which is used in current fiscal year for production of goods to revenue generation.
Unexpired insurance at the end of the fiscal period represents is it an accured asset liability expense or deferred expense?
deferred nexpense
What is a Depreciation Expense in accounting?
Depreciation expense is the process of reducing the cost of fixed asset during the fiscal life of a long term asset through annual fixed amount of expense charged to profit and loss account of business in which that long term asset is utilized in business to generate revenue.
What is the process of doing closing entries in accounting?
ALL EXPENSE ACCOUNTS ARE CLOSED OUT AND AMOUNT ID DEBITED OR CREDITED INTO CAPITAL ACCOUNT TO SETUP BOOKS FOR BEGINNING OF NEXT FISCAL YEAR.
Is equipment rental an expense?
Yes if equipment is leased on rent then rental payment is expense through income statement of that specific fiscal year.
Can depreciation be for fixed asset only?
Depreciation is the method of allocating the amount of fixed asset to the fiscal year in which that asset utilized and it is only applicable to fixed assets because current assets are fully utilizable in current year that's why full amount of current assets are charged to income statement.
