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Why is outstanding expense is credited in outstanding expense account?
Because it is a liability for business
What is the meaning of outstanding expenses?
it is an overdue expense or in some cases a big expense...
Is rent expense a liability?
rent is an expense while outstanding rent is a liability
What would be the effect of outstanding expense on accounting equation?
As we know, in accounting and book-keeping, expenses are debited in order to cause a decrease in the owner's (or stockholders') equity. So in this case, we record outstanding expense as: ASSETS = LIABILITES + CAPITAL Nil = +(outst. expense) - (outstanding expense) Outstanding Expenses are added to Liabilities because it is business' CURRENT LIABILITY and deducted from CAPITAL because it causes a decrease in owner's equity. NOTE: At the time of payment we deduct it from Liabilities as well as from Cash ( or in JOURNAL ENTRY: we debit Outstanding Expense and credit Cash) ASSETS = LIABILITES + CAPITAL -outst. exp. = -outst. exp. + Nil
What term is used to describe an expense that has not been paid or a revenue that has not been received?
Outstanding
Differnce between outstanding expenses and prepaid expenses?
prepaid expenses are paid in advance and they are called current assets.The outstanding expense is the unpaid money,still owed.
What is stock journal voucher?
In this voucher a user calculate only adjustment entry transaction are made like- outstanding expense,prepaid expense, interest on capital,etc .
What is the difference between outstanding expense and accrued expense?
I believe that Outstanding expense is an expense that has actually occured but not paid, but accrued expense is an expense which has been paid or may not be paid but the expense has not yet been accounted in books of accounts and hence, it is an estimated expense or an expense which is not yet been booked in our books and hence, we accrue the estimated expense in our books or we book the sum of actual expense and book it as an accrual for this period as there might be a case where the books have been closed for accounts payable but the books are still open for general ledger team to account the sum as an expense in the current period. The accrual will be normally reversed in the subsequent month and actual expenses will be booked. But in case of seasonal accounting the accruals are booked as a non-reversing entry in books and when the actual expense is known, the expense is booked and the accrual entry for the same will be reversed. Rajesh Rajagopalan
What are the examples of accrued expenses?
Accrued expense refers to an expense that has been incurred but not yet paid. Examples of accrued expense items might be interest that has accrued on an outstanding note that has not been paid, and taxes that have accrued but not yet been paid.
Difference between outstanding expenses and unexpired expenses?
Outstanding expnese is that expense which is already incurred but amount is not paid while unexpired expenses are those expenses for which payment is made in advance but actually expenses are not yet incurred.
What is bad debt expense if The company estimates that of the 40000 in accounts receivable outstanding at year-end 5200 probably will not be collected?
5200 is a bad debt expense as company has estimated that it is possible that company will not be able to receive that amount from debtors.
A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and their length of time past due?
percent of receivable method
