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When assets are withdrawn from a business by the owners is it considered to be expenses?
cash
Are accrued expenses assets or liabilities?
Accrued expenses are those expenses the benefit of which has already taken by the business but the payment is not yet cleared that's why it is the liability of business.
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.
Is an asset similar to an expense?
No. An asset is anything of value a company owns. An expense is the cost of the company to conduct regular business. Expenses include such things as Salaries/wages for employees, insurance, taxes, electricity, supplies, etc. There are expenses related to the cost of obtaining assets, such as supply expense, however the supply expense is not used until the assets themselves are used. For example, you purchase $500 in supplies, upon doing inventory of your supplies you have $300 left, at this point you deduct (credit) your supplies to reduce on hand and debit supply expense. Expenses do not directly effect assets, but instead effects Income. Assets are listed on the Balance Sheet (expenses are not) Expenses are listed on the Income Statement (Assets are not)
Does assets decrease when an owner withdraws cash?
Yes owner withdraws in form of cash or assets so ultimately it reduces the assets of business as well.
When assets are withdrawn from a business by the owners is it considered to be expenses?
cash
Are accrued expenses assets or liabilities?
Accrued expenses are those expenses the benefit of which has already taken by the business but the payment is not yet cleared that's why it is the liability of business.
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.
Is an asset similar to an expense?
No. An asset is anything of value a company owns. An expense is the cost of the company to conduct regular business. Expenses include such things as Salaries/wages for employees, insurance, taxes, electricity, supplies, etc. There are expenses related to the cost of obtaining assets, such as supply expense, however the supply expense is not used until the assets themselves are used. For example, you purchase $500 in supplies, upon doing inventory of your supplies you have $300 left, at this point you deduct (credit) your supplies to reduce on hand and debit supply expense. Expenses do not directly effect assets, but instead effects Income. Assets are listed on the Balance Sheet (expenses are not) Expenses are listed on the Income Statement (Assets are not)
How do you dissolve your business?
To dissolve your business you can sell your assets and file a form with the Secretary of your state. You will also need to pay your business expenses.
Does assets decrease when an owner withdraws cash?
Yes owner withdraws in form of cash or assets so ultimately it reduces the assets of business as well.
1 Current assets do not include a. cash b. debtors c. outstanding expenses d. prepaid expenses?
The answer is (C ) Outstanding expenses, as these are liabities of business and not an asset.
Is preliminary expenses is a administrative expenses or selling expenses?
Preliminary expenses are neither administrative expenses nor selling expenses rather these are classified as other assets in balance sheet and amortized over period of life of business.
What Expenses recorded as fixed assets?
Those costs which used in business for more than one fiscal year treated as fixed assets.
When do assets become expenses?
Assets become expenses when their economic benefits expire.
How do you treate preliminary expenses?
Preliminary expenses are those expenses which incurred before start of actual operations so these are assets of business and shown in asset side of balance sheet as other assets and then amortized over period of time through income statement.
Which of the following business transactions would cause a decrease both in assets and owner's equity?
a withdrawl
