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Does Incurred advertising expense on account increase assets?
yes
Is it true When cash is paid for an expense is assets increase owner's equity increases?
no
Prepaid expense is debit balance or credit balance in cash flow statement?
Prepaid expense is a debit balance.... Explanation... increase in assets......debited decrease in assets ..........credited increase in liabilities ........credited decrease in liabilities..........debited Prepaids Expenses are current assets since future expenses have been covered. Accordingly, an increase to prepaid expenses is a debit.
What is similar with asset and an expense?
There is no similarity between the assets and expense only prepaid/expired expenses is consider our assets.
Does amortization have a cash expense?
No amortization is done for intangible assets like depreciation for tangible assets and it also does not involve cash expense.
Does Incurred advertising expense on account increase assets?
yes
Is it true When cash is paid for an expense is assets increase owner's equity increases?
no
Prepaid expense is debit balance or credit balance in cash flow statement?
Prepaid expense is a debit balance.... Explanation... increase in assets......debited decrease in assets ..........credited increase in liabilities ........credited decrease in liabilities..........debited Prepaids Expenses are current assets since future expenses have been covered. Accordingly, an increase to prepaid expenses is a debit.
What is similar with asset and an expense?
There is no similarity between the assets and expense only prepaid/expired expenses is consider our assets.
Does amortization have a cash expense?
No amortization is done for intangible assets like depreciation for tangible assets and it also does not involve cash expense.
Is a major expense a capital improvement?
Capital Improvement is not an expense. Expenses are associated with expenses. Capital Improvements are increase in the assets. Example adding a new road. this is a very good question and it is also dumb
What is prepaid expense and where is it reported in the financial statements?
Prepaid expense is that amount of expense which is paid in advance and expense is not actually incurred and prepaid expense is current assets of business and show under assets side of balances heet.
Unexpired expense should write in income statement or balance sheets?
Unexpired expense is current assets until used so it is part of assets of business and should be included in assets side of balance sheet.
What is the systematic allocation of a fixed assets cost to expense?
Depreciation.
Assets consumed or services used is also known as?
An expense
What will decrease an asset and increase liability?
You cannot just decrease an asset and increase a liability without affecting equity since Assets = Liabilities + Equity. And since you want to find a situation where liabilities increase and assets decrease, you will need to decrease equity by the absolute value of both changes (ie -6 + 5 = 11). So, if Assets decrease by 5 and Liabilities increase by 6, then equity needs to decrease by 11 to keep the equation in equilibrium. Essentially this means that the journal entry will require some type of expense that is only partially paid. For example, if you buy a $10 widget and incur and expense immediately but only pay for half of it immediately then your journal entry will be: Dr. Widget expense 10 Cr. Accounts payable 5 Cr. Cash 5 Assets decrease, and Liabilities increase. The trouble you were having was not recognizing the need for the equalizing equity account.
Is an increase in rent expense a credit?
Rent expense has a debit balance as a normal balance so increase in rent will be shown by debit to rent expense.
