Sales debit or credit? For any company to remain in business, making sales is vital as this is what every company should be thinking of. It is for this reason that one should try to figure out what customers want as well as study consumer behaviors. As a company, whether … Read more
Cash sales debit or credit? Sales are part of the revenue a company makes and is usually recorded on the company’s income statement. When companies make sales, they can be either in cash or on credit. The amount of sales companies make adds to the overall success of their business … Read more
Is prepaid rent an asset? A company can make an advance payment for a good or service such as rent for leased office space or insurance coverage that gives continual benefits over time. Such prepayments are known as prepaid expenses which are made in advance for future benefits. Hence, prepaid … Read more
Service revenue asset or liability? Businesses generate income from the services they complete to an individual or another entity. Accounting comprises all revenue and profits generated by a business. Service revenue is a vital metric for any business as there is a need for a company to know how much … Read more
Service revenue is what type of account? As a business owner, understanding what type of account the service revenue is is important. Knowing how much service revenue a company generates will aid investors in understanding the profitability of the services a company offers. For business owners, understanding what percentage of … Read more
Is unearned revenue an asset? If you are not familiar with the various accounting principles that businesses use, you will be wondering what unearned revenue means and whether it is an asset; these we shall discuss hereafter. When individuals or corporate entities want to purchase a product or service, three … Read more
Is Merchandise inventory an asset? Effective inventory management is essential for the business success of wholesalers, retailers, and distributors. Oftentimes, these companies have considerable amounts of money invested in a stock that is intended for sale to customers. For many companies, this merchandise inventory is known as the inventory of … Read more
Is accounts payable a permanent account? Accounts payable (AP) is the short-term obligations listed on the balance sheet which have been incurred by a company during its operations. It is a current liability that remains due and must be paid in the short term such as legal fees, supplier invoices, … Read more
Is service revenue a permanent account? Service revenue is the income that a company generates from rendering a service. A company’s revenue is found at the top of a company’s income statement and categorized into service revenue and sales revenue. The majority of businesses record the service revenue using the … Read more
Income statement ratios are important when analyzing the income statement of a company. The income statement ratios formulas are created using the numerical values on the income statement and aid business owners and investors alike to get a better understanding of what the numbers say about the company. The numbers … Read more
