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What else can I help you with?
When assets are withdrawn from a business by the owners is it considered to be expenses?
cash
Are accrued expenses assets or liabilities?
Accrued expenses are those expenses the benefit of which has already taken by the business but the payment is not yet cleared that's why it is the liability of business.
When a business pays cash for salaries assets decrease and expenses?
INCREASE
What activities focused on providing valuable assets to a business?
Investing Activities
How do you dissolve your business?
To dissolve your business you can sell your assets and file a form with the Secretary of your state. You will also need to pay your business expenses.
1 Current assets do not include a. cash b. debtors c. outstanding expenses d. prepaid expenses?
The answer is (C ) Outstanding expenses, as these are liabities of business and not an asset.
Is preliminary expenses is a administrative expenses or selling expenses?
Preliminary expenses are neither administrative expenses nor selling expenses rather these are classified as other assets in balance sheet and amortized over period of life of business.
What Expenses recorded as fixed assets?
Those costs which used in business for more than one fiscal year treated as fixed assets.
What are valuable possessions of the business known as?
Valuable possessions of a business are known as assets. Assets can be classified into various categories, including current assets (like cash and inventory) and fixed assets (like property and equipment). They play a crucial role in determining the financial health of a business and are essential for generating revenue and supporting operations. Proper management of assets is vital for maximizing a company's value and ensuring long-term success.
How do you treate preliminary expenses?
Preliminary expenses are those expenses which incurred before start of actual operations so these are assets of business and shown in asset side of balance sheet as other assets and then amortized over period of time through income statement.
When do assets become expenses?
Assets become expenses when their economic benefits expire.
Is it true a withdrawal by the owner is recorded as a deduction from assets and an increase in expenses?
Yes, a withdrawal by the owner is typically recorded as a deduction from the owner's equity rather than directly from assets or as an expense. This transaction decreases the equity section of the balance sheet, reflecting that the owner has taken money out of the business. While it does reduce the overall assets, it does not increase expenses on the income statement, as withdrawals are not considered business expenses.
