What are accrued items explain with example, Accounting Basics

Assignment Help:

Q. What are Accrued items explain with example?

Delayed items consist of two types of adjusting entries asset/expense adjustments and liability/revenue adjustments. For instance prepaid insurance and prepaid rent are assets until they are used up then they become expenses as well unearned revenue is a liability until the company renders the service then the unearned revenue becomes earned revenue.

2081_What are Accrued items explain with example.png

Accrued items consist of two kinds of adjusting entries asset/revenue adjustments and liability/expense adjustments. For instance assume a company performs a service for a customer but has not yet billed the customer. The accountant files this transaction as an asset in the form of a receivable and as revenue because the company has earned revenue. As well assume a company owes its employees' salaries not yet paid. The accountant files this transaction as a liability and an expense because the company has incurred an expense.


Related Discussions:- What are accrued items explain with example

Are mailing lists is prepaid or period expense?, Are mailing lists are cons...

Are mailing lists are considered as prepaid or period expens?

During the fiscal period just ended some of the inventory, During the fisca...

During the fiscal period just ended some of the inventory in the warehouse of Jamie Ltd. wasn't counted. Jamie Ltd. uses a periodic inventory control system. Explain how the foll

.account concept, What is the implication of applying accounting concepts w...

What is the implication of applying accounting concepts wrongly

Essay, "Imagine yourself in a situation of being encouraged to inflate your...

"Imagine yourself in a situation of being encouraged to inflate your expense account. Do you think your choice would be most affected by your individual moral development or by the

.., Ask queshow to be an experttion #Minimum 100 words accepted#

Ask queshow to be an experttion #Minimum 100 words accepted#

Learning objectives of current ratio, Q. Learning objectives of current rat...

Q. Learning objectives of current ratio? - Analyze the transactions by examining source documents. - Journalize the transactions in the journal. - Post the journal entrie

Question, What is the implication of applying accounting concepts wrongly

What is the implication of applying accounting concepts wrongly

An invoice for product x totals $1, An invoice for product X totals $1,200 ...

An invoice for product X totals $1,200 and is dated July 6, 2000 with terms 2/10-60X. If the invoice is paid on September 3, 2000, what is the net amount of payment? A. $912

Institute of management accountants, The Institute of Management Accountant...

The Institute of Management Accountants previously the National Association of Accountants is an organization with approximately 70,000 members consisting of management accountants

If on the opening day of business, If on the opening day of business, you p...

If on the opening day of business, you put in supplies worth $250 and $3000 cash, would that be considered a transaction OR would it be considered your beginning balances because

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd