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Financial Accounting Course |
| U.S. GAAP-Codification | Accounting by Topic | Accounting Courses |
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Expense
Accounts 01 |
U.S. GAAP
Codification,
Accounting
Textbooks |
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Financial
Accounting,
Intermediate
Accounting,
Advanced
Accounting
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U.S. GAAP by Topic,
Accounting by Topic,
Securities Law Library
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Expense Accounts 01 Examples and Practice Questions
Expense1. Expense is the use of resources to generate revenue 2. Expense is recognized when related revenue is recognized --> this is called "matching principle" * Debits and credits 1. Expense accounts have normal balances on the debit side 2. Increases in expense accounts are recorded on the debit side 3. Decrease in expense accounts are recorded on the credit side |
Examples of expense accounts
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Practice Questions 1. On November 1, 2010 Entity A purchased 500 units of merchandise at the price of $10 per unit and paid full amount in cash 2. On November 12, 2010 Entity A sold 200 units of merchandise at the selling price of $14 per unit and received full amount in cash 3. Prepare journal entries at the following dates (1) November 1, 2010 (2) November 12, 2010 4. Journal entry at November 1, 2010
5. Journal entry at November 12, 2010, to record revenue
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Codification Topics at the 100 Level |
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Topic
105: Generally Accepted Accounting Principles |