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...
Category: Accounting Basics
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...
A Liability is a financial obligation by a person or business to pay for goods or services at a later date than the date of purchase. An example of a liability for a business is Accounts Payable. The...
What are Closing Entries in Accounting? | Accounting Student Guide
What is a Closing Entry? A closing entry is a journal entry made at the end of an accounting period to reset the balances of temporary accounts to zero and prepare those accounts for the new...
In this article we break down the differences between Depreciation, Amortization, and Depletion, discuss how each one is used, and what the journal entries are to record each. The main difference...