Is capital stock a debit or credit? Capital stock refers to the maximum number of shares that could be issued by a company. The two main types of shares that companies issue are preferred stock and common stock; with common stock being the most commonly issued. A company’s capital stock … Read more

Notes payable is what type of account? A business owner may purchase a piece of equipment on credit or borrow money from another party and then issue a promissory note to the lender to assure him or her of payment on a predetermined date. When this business owner issues this … Read more

Profitability indicators are a class of financial ratios that are used to assess the ability of a business to generate earnings relative to its operating cost, revenue, assets, or shareholders’ equity over time, using the data from a particular point in time. The indicators of profitability in business are one … Read more

Is land debit or credit? One of the assets that companies consider very valuable is land, this is because it is an asset that generally appreciates in value over the years instead of depreciating. The land is therefore considered an asset with the longest lifespan since it can be used … Read more

What type of account is retained earnings? Retained earnings (RE) are reported on the balance sheet of companies while the changes are reported on the statement of retained earnings. They represent the portion of a company’s profits that have been reserved for reinvestment back into the company. Profits give company … Read more

Is notes payable debit or credit? Notes payable is a liability account on the balance sheet of a business that issued a written promise to repay a lender. Businesses may borrow money or purchase a piece of equipment on credit from another party. Such transactions are sometimes completed with a … Read more

Supplies expense is what type of account? Supplies are incidental items that companies purchase to use in the near future. When accounting for the supplies purchased, the normal approach is to charge them to expense. This means that when companies buy supplies for their business, they record the cost in … Read more

Is notes receivable debit or credit? Many businesses sell goods or render services to customers on credit. After the sale, they simply send an invoice to the customer and the customer pays later. However, for certainty, some transactions are better completed with a more formal promise from the customer assuring … Read more

Is accounts payable a current liability? Accounts payable is a major concern for every company that has had reason to make purchases of goods or services on account. It appears on the company’s balance sheet under the liabilities section. After goods or services are bought on credit, the amount owed … Read more

Is supplies expense debit or credit? Supplies are incidental items that are purchased with the expectation to be consumed in the near future. When accounting for supplies, the normal approach is to charge them to expense. That is, when you buy supplies for your business, you record the cost in … Read more