Accounting

Effective inventory management is essential for the business success of wholesalers, retailers, and distributors. Oftentimes, these companies have considerable amounts

Is accounts payable a permanent account? Accounts payable (AP) is the short-term obligations listed on the balance sheet which have

Is service revenue a permanent account? Service revenue is the income that a company generates from rendering a service. A

Income statement ratios are important when analyzing the income statement of a company. The income statement ratios formulas are created

The statement of cash flows or cash flow statement is an important financial statement that shows the cash inflows and

Is prepaid expense an asset? Oftentimes, businesses incur a type of expense known as a prepaid expense where a company

Is prepaid rent a permanent account? Prepaid rent is the rent paid before the rental period to which it is

What type of account is sales returns and allowances? Although goods are sold to customers, not all customers are satisfied

Unearned revenue is what type of account? There are situations whereby companies receive payment from customers for goods or services

What type of account is cost of goods sold? The cost of goods sold (COGS) is a listed item on

Is cost of goods sold a debit or credit? Transactions are usually recorded in accounting as a debit or credit

Is sales discount debit or credit? When companies sell goods or render services, they may offer sales discount. These transactions

What type of account is sales discounts on financial statements? A sales discount is recorded in a separate account from

Equipment debit or credit? There is no company that has not had the need of asking this question at some

Is treasury stock debit or credit? Treasury stocks are previous outstanding stock that has been bought back by the issuing

An income statement lists a company’s revenues, expenses, losses, and profits. The statement typically covers a period of time, such

Is it an asset or a liability? Accumulated depreciation is the total amount of depreciation expense that has been associated

Is common stock debit or credit? Common stocks form company equity and are therefore treated as equity in accounting. Companies

In order for any kind of business to strive, to keep track of its finances, and understand its financial standing,