Ad
related to: adjustment entry for accrued expenses template pdf word document file editor online free
Search results
Results from the WOW.Com Content Network
A third classification of adjusting entry occurs where the exact amount of an expense cannot easily be determined. The depreciation of fixed assets, for example, is an expense which has to be estimated. The entry for bad debt expense can also be classified as an estimate.
A general journal entry would typically include the date of the transaction (which may be dispensed with after the first entry of the day), the names of the accounts to be debited and credited (which should be the same as the name in the chart of accounts), the amount of each debit and credit, and a summary explanation of the transaction ...
The sum total of each column should be equal, or "balance." The act of "closing the books" refers to zeroing out all the revenue and expense amounts at the end of an accounting period (typically a fiscal year) and adding the difference to the retained earnings account. This is called a "closing entry."
The modified cash basis of accounting, combines elements of both accrual and cash basis accounting. Some forms of the modified cash basis record income when it is earned but deductions when expenses are paid out. In other words, the recording of income is on an accrual basis, while the recording of expenses is on the cash basis.
If the company does not record the 2nd transaction, both Expenses and Liabilities are understated. This will make the company's Income appear higher than it actually is, which can have very serious consequences. Accrued liabilities is the direct opposite of prepaid expense. See Matching principle.
In accounting and finance, an accrual is an asset or liability that represents revenue or expenses that are receivable or payable but which have not yet been paid. In accrual accounting, the term accrued revenue refers to income that is recognized at the time a company delivers a service or good, even though the company has not yet been paid.
In particular, "accretion expense" is a phrase used in topic 410-20 of the United States GAAP Codification of Accounting Standards (SFAS 143), which describes the reporting of asset retirement obligations. This kind of liability typically has a long and predetermined life on a company's balance sheet, and hence, as mentioned, it is valued via DCF.
Microsoft Office is a paid suite of productivity apps while Google Docs Editors Suite is available for free to users with private Google accounts. It is also offered as part of Google's business-oriented Google Workspace service, which ran until October 2020 under the name G Suite, a monthly subscription service that unlocks additional features.
Ad
related to: adjustment entry for accrued expenses template pdf word document file editor online free