Accounting

Is merchandise inventory debit or credit? Merchandise inventory is goods that have been purchased by a retailer, wholesaler, or distributor

Although recent advancements in technology have led to a lot of businesses adopting remote work options, most businesses still have

Is salaries expense debit or credit? Salaries expense is normally recorded in a company’s income statement as part of the

Is deferred service revenue debit or credit? Any time a company or individual receives payment for future services, this is

Revenue is the income a company generates from the sale of goods or the provision of services to clients. Nevertheless,

Is unearned revenue debit or credit? Businesses make revenue from the sale of their goods or from providing services to

Are drawings debit or credit? In a business, there are situations whereby owners withdraw part of the business capital. It

Is sales return debit or credit? Customers usually return defective and damaged products to retailers. These retailers then have to

Is sales revenue debit or credit? Sales revenue is the income that a business generates from the sale of its

Is cash debit or credit? One of the most regularly used assets of companies is cash. It is used to

Is capital debit or credit? Every business requires capital for its startup as well as its sustenance. In other words,

Retained earnings debit or credit? Retained earnings are usually recorded on the right column of a company’s balance sheet under

Cost of sales, also known as cost of goods sold (COGS) is a calculation of all the direct costs incurred

Is service revenue debit or credit? Businesses generate revenue from the sale of goods or from providing services to their

For any company to remain in business, making sales is vital as this is what every company should be thinking

Sales are part of the revenue a company makes and is usually recorded on the company’s income statement. When companies

Is prepaid rent an asset? A company can make an advance payment for a good or service such as rent

Service revenue asset or liability? Businesses generate income from the services they complete to an individual or another entity. Accounting

Service revenue is what type of account? As a business owner, understanding what type of account the service revenue is

If you are not familiar with the various accounting principles that businesses use, you will be wondering what unearned revenue