- What is revenue and expenses?
- Is revenue the same as profit?
- How is petty cash treated in accounting?
- Why is petty cash an asset?
- What are 3 types of assets?
- What are the types of revenue?
- Is petty cash an expense or revenue?
- Is cash an asset or expense?
- What is revenue example?
- How does petty cash work in accounting?
- Is revenue a debit or credit?
- Is cash a revenue?
What is revenue and expenses?
Rather, revenue is the term used to describe income earned through the provision of a business’ primary goods or services, while expense is the term for a cost incurred in the process of producing or offering a primary business operation.
Of the four terms being considered, expenses are the most diverse..
Is revenue the same as profit?
Revenue is the total amount of income generated by the sale of goods or services related to the company’s primary operations. Profit, typically called net profit or the bottom line, is the amount of income that remains after accounting for all expenses, debts, additional income streams and operating costs.
How is petty cash treated in accounting?
The initial petty cash journal entry is a debit to the petty cash account and a credit to the cash account. The petty cash custodian then disburses petty cash from the fund in exchange for receipts related to whatever the expenditure may be. … The cashier creates a journal entry to record the petty cash receipts.
Why is petty cash an asset?
Petty cash refers to spending cash that a company has readily available. Because it is capable of providing an economic benefit as is, it is considered a current asset.
What are 3 types of assets?
Types of assets: What are they and why are they important?Tangible vs intangible assets.Current vs fixed assets.Operating vs non-operating assets.
What are the types of revenue?
Types of revenue accountsSales.Rent revenue.Dividend revenue.Interest revenue.Contra revenue (sales return and sales discount)
Is petty cash an expense or revenue?
Petty cash is a current asset and should be listed as a debit on the company balance sheet. To initially fund a petty cash account, the accountant should write a check made out to “Petty Cash” for the desired amount of cash to keep on hand and then cash the check at the company’s bank.
Is cash an asset or expense?
Current assets are short-term economic resources that are expected to be converted into cash within one year. Current assets include cash and cash equivalents, accounts receivable, inventory, and various prepaid expenses.
What is revenue example?
Fees earned from providing services and the amounts of merchandise sold. Examples of revenue accounts include: Sales, Service Revenues, Fees Earned, Interest Revenue, Interest Income. … Revenue accounts are credited when services are performed/billed and therefore will usually have credit balances.
How does petty cash work in accounting?
Petty cash or a petty cash fund is a small amount of money available for paying small expenses without writing a check. … The expenses will be recorded in the company’s general ledger expense accounts when the petty cash on hand is replenished.
Is revenue a debit or credit?
Aspects of transactionsKind of accountDebitCreditAssetIncreaseDecreaseLiabilityDecreaseIncreaseIncome/RevenueDecreaseIncreaseExpense/Cost/DividendIncreaseDecrease1 more row
Is cash a revenue?
Cash accounting, on the other hand, will only count sales as revenue when payment is received. Cash paid to a company is known as a “receipt”. It is possible to have receipts without revenue.