Is Advertising An Expense Or An Asset? Advertising is a form of marketing communication used to promote or sell a product, service, or idea. It is used through various media channels such as television, print, radio, and the Internet. Advertising…
Is Accumulated Depreciation An Asset Or Liability? Depreciation is an accounting method used to allocate the cost of an asset over a period of time. This method is used to spread out the cost of the asset over the life…
Is Depreciation a Fixed Cost or a Variable Cost? Depreciation is the allocation of a tangible asset’s cost over its useful life, resulting in a decrease in the asset’s carrying value. There are various methods of depreciation, such as straight-line…
Are Supplies A Current Asset? Office supplies are an essential part of a business’s everyday operations. They are items used in the office that are necessary for day-to-day functioning. It is important to understand whether or not these supplies are…
What Is A Cost of Goods Sold? Cost of Goods Sold (COGS) is a term used to describe the total direct costs associated with the production of a product. This includes expenses for raw materials and labor but excludes costs…
Transactional Accounting Transactions are recorded in the accounting system in accordance with generally accepted accounting principles. Accounting transactions are financial transactions within a company that are documented in the accounting system. These transactions can include sales, purchases, payments, and receipts.…
Accounting For Utility Expense And Journal Entry Utility Expense Utility expense is a mixed cost that includes both fixed and variable components. It covers electricity, heat, sewer, and water costs, as well as expenses for telephone and internet services that…
Journal Entry Cash Sales Cash sales are a form of transaction where payment is immediately made by the buyer. This eliminates the need for sellers to extend credit to customers, as they are not at risk of bad debt. Payment…
Partial Payment Journal Entry Key Takeaways Partial payment journal entry is used to pay off a portion of an outstanding accounts payable. It involves debiting the accounts payable and crediting cash, with the debited and credited amounts being equal. The…
Paid Cash on Account Journal Entry Key Takeaways Paid Cash on Account is a common accounting practice for business. The journal entry involves a debit accounts payable and a credit cash account. Paying cash on account reduces the amount of…
Bank Loan Journal Entry Key Takeaways Debiting Cash and crediting Loan Payable Accounts are the key journal entries for recording a bank loan. Early loan repayment should be reflected in the journal entry, including the amount paid off and any…
Equity Investment Journal Entry Key Takeaways Initial investment: Debit equity investment account, credit cash account Recording net income: Debit equity investment account, credit investment income account Sale of equity investments: Debit cash account, credit equity investment account Purchase of additional…