Accounts Receivable Journal Entry

Journal Entries for accounts receivable

Last Updated on 12/22/2017 by GS Staff What are the journal entries for account receivable? Accounts receivable is the money owed from clients for purchased goods or services on credit. For example, a sports equipment manufacturer might ship sporting goods to a retail store and allow the store 30 days for payment. As the sports …

Accounts Receivable Journal Entry Read More »

Is Depreciation an Expense?

why is depreciation an operating expense

Last Updated on 12/21/2017 by GS Staff Is depreciation an expense? To give a short answer, depreciation is an operating expense. Keep reading for an explanation. When a company purchases an asset such as equipment or a building, it is capitalized. This means that the purchase is not recognized as an expense on the income …

Is Depreciation an Expense? Read More »

What are Noncurrent Assets?

non-current assets definition

Last Updated on 12/20/2017 by GS Staff What are noncurrent assets? Noncurrent assets are assets that are not projected to be converted into cash within the accounting year. They are typically assets that cannot quickly be liquidated. A common definition of noncurrent assets is any assets that is not a current asset. The three common …

What are Noncurrent Assets? Read More »

Is Prepaid Rent an Asset?

prepaid rent an asset or liability

Last Updated on 12/19/2017 by GS Staff Is prepaid rent an asset? Prepaid rent is  known as a prepaid expense. It represents rent that has been paid in advance. For example, a business may rent an office building for 12-months and pay for the full year of rent in advance upon signing the lease. Prepaid rent …

Is Prepaid Rent an Asset? Read More »

What are Liabilities in Accounting?

liabilities in accounting

Last Updated on 12/17/2017 by GS Staff What are liabilities in accounting? We likely all are familiar with liabilities in our personal life. Debts such as mortgages or car loans are example of common personal liabilities that individuals routinely pay. However, what are liabilities in terms of accounting. Let’s get into it below. Accounting Liabilities …

What are Liabilities in Accounting? Read More »

Who Owns CNN?

Last Updated on 12/12/2020 by GS Staff Q: Who owns CNN? CNN (also known as the Cable News Network) is one of the major cable news stations that broadcasts to over 100 million households in the United States and Canada. The station first aired in 1980 and is the pioneer of 24-hour news. CNN was …

Who Owns CNN? Read More »

What is the Cash Ratio?

Last Updated on 12/13/2017 by GS Staff What is the cash ratio? The cash ratio helps determine a company’s ability to pay its short-term liabilities with its most liquid assets that consist of cash and cash equivalents. I think most readers are clear on the definition of cash. However, cash equivalents probably needs some explaining. …

What is the Cash Ratio? Read More »

What is the Acid Test Ratio?

what is a quick ratio

Last Updated on 12/12/2017 by GS Staff What is the acid test ratio? The acid test ratio is also know as the quick ratio. It helps present a picture of a company’s short-term liquidity. Essentially, it determines how well a  company can promptly meet its short-term liabilities with its most liquid assets. You will notice …

What is the Acid Test Ratio? Read More »

A List of Current Assets

Current Assets Listed

Last Updated on 08/31/2020 by GS Staff What are examples of current assets? Many of us have heard about current assets but are not necessarily clear about what they are when it comes to accounting. Below we will provide a list of current assets and also define these types of assets. What are Current Assets? …

A List of Current Assets Read More »