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An expense account is for wages, motor expenses, stationery etc. Expenses are what you use to be able to run your business, the same as assets.
But expenses are revenue expenditure items as mentioned above, and assets like motor vehicle and machinery are classed as capital expenditure.
So no an expense account is not an asset account, even though they are both recorded on the debit side of there accounts and both recorded in the general/main ledger.
Expenses are recorded in the profit and loss account and assets in the balance sheet.
Expenses well a majority are allowable for tax purposes and assets are claimable through capital allowances.
So assets are used in the business to generate capital and expenses are deducted from gross profit leaving a net/loss profit.
What else can I help you with?
What is the journal entry for the cash stolen from cash box?
Debit: Profit & Loss Account Credit: Cash In Hand or Petty Cash Nature of Debit is Expense and the nature of Credit is Asset. Expense Increased and Asset Decreased If you have an account already open for such Losses then you should debit such account. For example in my company Cash loss is usual Case so we have an Account titled "Cash Lost Expense" In my cash I will pass the entry as Debit: Cash Lost Expense Credit: Cash in Hand or Petty Cash
What is the Difference between asset method and expense method?
the asset method = record all purchases as asset then recognize expense (diff of beg bal & end bal) dr. prepaid supply (purchase) cr. cash expense method = record all purchases as expense, then account for the ending balance. adjust beg balance to reflect end balance. dr. supply expense cr. cash
Is a cash register an asset or an expense?
Yes
What account types is a prepaid expense account?
A prepaid expense account is an asset, thus not a temporary account either.
What account type is a prepaid expense account?
A prepaid expense account is an asset, thus not a temporary account either.
What type of account is a prepaid expense account?
A prepaid expense account is an asset, thus not a temporary account either.
A journal entry in order to fix your cash register and decrease the account balance?
Date: [Insert Date] Debit: Cash Register Repairs Expense $XXX Credit: Cash Register Asset $XXX This journal entry records the expense incurred for fixing the cash register, reducing the asset account balance to reflect the repairs made. It ensures that our financial records accurately represent the cash register's current value while acknowledging the associated costs.
Is a petty cash account an asset with a normal credit balance?
Petty Cash is an asset account with a normal Debit balance.
Is Loss on sale of asset is an expense account?
yes
Why is cash a credit in accounting?
Cash is "not" a credit in accounting. The cash account is an asset and is a debit balance account. To increase the cash account you debit the account and to decrease it you credit it.Cash = Current Asset = Debit Balance(GAAP)
Is rent paid expense an asset or liability?
Rent paid is typically considered an expense rather than an asset or liability. When rent is paid, it reduces the cash account (an asset) and is recorded as an expense on the income statement, reflecting the cost of using the rented space during that period. However, if rent is paid in advance, it may be classified as a prepaid expense, which is considered a current asset until the rental period occurs.
Is electricity a liability or asset?
Electricity expense is an expense account while accrued electricity payable is a liability account
