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What is the difference when the revenue is more that the expense section on the income statement?
Net Income (Loss)
Is sales revenue an expense or asset?
Sales is a revenue not an expense or asset while difference between sales and expense is profit which is liability for business.
Should investments be listed under expense or revenue in an income statement?
The money that you invest should be counted as an expense. The income from your investment would be considered revenue.
What is the difference between revenue and expense called?
Net Income
Is Purchase Discount revenue or expense?
Sales discount is not an expense account, but is also a deduction to an income statement. It is just a contra account of a revenue account particularly a sales revenue account.
What kind of expense is rent expense?
Rent expense is a Revenue expense and not a capital expense. It is a revenue expense because it recurs from year to year and is not an expense in purchasing a fixed asset. It is classified as a revenue expense also because it features in the income statement of each year and following the principle of accruals, the accountant must, make the necessary end of period adjustments to make sure that the the amount of rent expense that should have paid is charged against revenue and not just the actual cash paid.
Where does accrued revenue go on the income statement?
An expense such as rent, utilities, insurance goes on the income statement because it is an expense that occurs to operate the business and it affects the net income of said business. If I have an income of $15,000 and I paid out expenses of $10,000 my net income is $5,000.
Is rent expense is credit?
As all expenses has debit balance as normal balance and rent is also expense then rent expense also has debit balance and shown in income statement as a reduction from revenue.
If accrued revenue is left out of financial statement what are effects on in come statement balance sheet cash flow statement?
Assets (accrued revenue) is understated. Accrued taxes are understated (unaccrued revenue times tax rate) Retained earnings are understated (amount of revenue not accrued less the accrued income tax) Income statement revenue is understated Income tax expense is understated (unaccrued revenue times tax rate)
When preparing an income statement vertical analysis each revenue and expense is expressed as a percent of net income?
True
Is bad debt reported on the income statement as a contra revenue account?
It depends on when the Accounting period too place. From2011 onward, it was reported as an Expense. Starting in 2012, bad debt expense is reported as a contra Revenue account.
Is rent expense credit or debit?
As all expenses has debit balance as normal balance and rent is also expense then rent expense also has debit balance and shown in income statement as a reduction from revenue.
