ACCTG 101 Lecture Notes - Lecture 7: Debits And Credits, Accounts Payable, Accrual

7 views3 pages
18 Dec 2020
School
Department
Course
Professor

Document Summary

Involves determining which expenses have been incurred by checking invoices received from suppliers (accounts payable) and estimating expenses for unreceived invoices. Accrued expenses incurred during current period but paid in next. When g/s provided but cash not received until following period. E. g. interest receivable on loans, commission earned, unbilled revenue. An account found in an account ledger used to reduce that value of a related account. Have balance in opposite direction to those of the control account with which they are associated - designed to offset other transactions. Used to correct previous accounting mistakes, to reduce the value of an asset that is depreciating or to allot for uncollectible bills. Used by accountants rather than reducing the value of the non-contra account directly to keep financial accounting records clean. When accounting for assets, the difference between the asset"s account balance and the contra account balance is referred to as the book value.

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers

Related Documents

Related Questions