Is Accounts Receivable an Asset, Liability, Revenue, or Expense?
Accounts Receivable is an Asset. It represents the sale of goods or services to a company's customers or clients on account. The company has given additional time to the customer to pay the bill. An...
Is Accounts Payable an Asset, Liability, Revenue, or Expense?
Accounts Payable is a Liability. It represents the purchase of goods or services that a company has not yet paid for. The company has created an obligation to pay. A liability has a normal credit...
In Accounting and Finance, Equity represents the value of the shareholders' or business owner's stake in the business. Equity accounts have a normal credit balance. Equity increases on the credit...
An Expense represents a cost incurred in the making of revenue. Examples of Expenses are Rent, Insurance, cost of goods, and payroll. An expense is also used to record the reduction of value of an...
In accounting, a Prepaid account represents cash expended prior to goods or services being received. Examples of Prepaid accounts are Prepaid Expense, Prepaid Rent, and Prepaid Insurance. A Prepaid...
Revenue is the income generated by a business in the normal course of operations. It represents the sale of goods and services to customers or clients. For a non-profit organization, revenue is the...
