Accrued expenses affect a. liabilities Ob. fixed assets C. assets d. prepaid expenses on the balance sheet.

Q: The balance in the profit and loss account is transferred to the:   profit and loss account.…

A: Profit and loss account: It tells the net profit / ( loss ) of the company for the particular…

Q: How do you create a common size balance sheet with all assets as a percentage of total assets

A: Common size statement analysis, as the name suggests, first converts the financial statement as a…

Q: Which of the following is NOT considered an accrued expense account? Interest Expense Rent Expense…

A: The correct answer is Option (C) Depreciation expense because the depreciation is an adjusting entry…

Q: A debit balance in the Retained Earnings accounts is reported as a (an) a. asset b.…

A: Retained Earnings refers to amount of Profit set aside by the company during the year. it is known…

Q: WHAT IS CONTRACTUAL LIFE OF ASSETS?

A: An asset is a resource of economic value which is own by an individual and a company and provides…

Q: Defention of Assets, liability, current assets, current liabilities

A: Definition of Assets, liability, current assets, current liabilities are given below,

Q: distinguish between current and non-current assets, and current and non-current liabilitie

A: Any asset which is convertible in terms of cash within a time duration of one year is a current…

Q: Notes Payable is a(n) and is reported on the A. Asset; Income Statement B. Liability; Balance Sheet…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: Which one of the following is a current asset? 4 Creditors. Accruals. Machinery. Prepayments.

A: Current assets is the one which is easily convertible into cash or its equivalent. It includes cash,…

Q: Describe how debits and credits impact assets, liabilities , owner,s equity

A: The books of accounts are prepared as per the double accounting system. All the debits shall be…

Q: What is a prepaid expense and where is it reported in the financial statements?

A: Prepaid expense:   Prepaid expenses are any expenses that is paid before it becomes due. A prepaid…

Q: In the balance sheet, assets are listed by ___? A. The importance of the asset B. their date of…

A: The balance sheet is a summary of permanent accounts prepared at the end of the accounting period.…

Q: Prepaid expenses appear in the section of the balance sheet.

A: A balance sheet offers a comprehensive view of a company's financial status at a particular moment,…

Q: The following are the typical classifications used in a balance sheet: a. Current assets b.…

A: The balance sheet represents the financial position of the business with assets and liabilities on a…

Q: Is sales listed as liability equity revenue expense or an account

A: Sales generate revenue for the business. It is main purpose of the business to make more and more…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is