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What effect does depreciation expense have on net income and cash flow?
Depreciation Expense reduces net income and has no effect on cash flow.
If expense is overstated will net income be lower?
Net Income = Sales - ExpensesSo as many expanses net income will be lower.
What is revenue minus net income?
EXpense
What does Revenue less expense equal?
net income
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.
Where do the Maintenance expense go on the financial statement?
Maintence Expense is just like any other expense and will be reported on the income statement and deducted from Gross Income to obtain Net Income...
What is the difference between liability and expense?
Liabilities are debts owed to an outside party (creditor) such as a bank loan, a truck note, etc. Expenses are the cost of operating the business and affect the net income. Expenses include things such as utilities, supplies, insurance, rent, etc. While liabilities are listed on the balance sheet, expenses are not. Also, Liabilities decrease Owners Equity (Stockholders Equity) while Expense decrease Net Income.
What accounts are in net income?
Included in net income are the following: 1. All revenue-related accounts, e.g. Sales, service revenue, interest income, rental income, etc. 2. All expense-related accounts, e.g. Purchases, Depreciation, Rental expense, Maintenance expense, Amortization, Utilities expenses, etc. Net income = Revenues - Expenses
What is the difference between revenue and expense called?
Net Income
What is the difference when the revenue is more that the expense section on the income statement?
Net Income (Loss)
How does a payout of dividends effect the net income?
It shouldn't. Dividends are not considered an expense since stockholders are investing in the company. In return for investing, the company pays them but they are not employees.
If ginger had net earnings of 740 per month and she spends 200 for her house rent what percent of her net income is her rent payment?
Her rent accounts to 27% of her 740 income per month.
