Since accrued expenses are obligations that need to be paid by the company, they are classified as liabilities by the company. Mostly, they are supposed to be settled within 12 months by the company, and therefore, they are classified as Current Liabilities. Examples of other expenses that usually need an accrual adjusting entry resulting in
Continuação do Artigo →OpEx is not depreciated over its useful life, and the entire expense is recognized right away. OpEx are short-term expenses and are typically used up in the accounting period in which they were purchased. CapEx may also be paid for in the period when it is acquired, but it may also be incurred over some time
Continuação do Artigo →The JKL company expensed out the professional fee and showed it in its income statement. At the start of your capital expenditure project, you need to decide whether you will purchase the capital asset with debt or set aside existing funds for the purchase. Saving money for the purchase usually implies that you will have
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