CH2 FRAME 5-9

CH2 FRAME 5-9 - FRAME5 Expense

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FRAME 5 Expense Results from the use or consumption of assets in the generation of revenue Assets are described as resources As the resources (assets) are used up or consumed in the operations of  business, they become   EXPENSES Contains the cost of that portion of an assets that has been used in generating  the current periods revenue Temporary accounts est. for the left side of retained earnings  Reduce retained earnings End of accounting period the expense accounts are disposed of (after being  reported in the earnings statement) by transfer to a special closing account and  then by transfer to the retained earnings account FRAME 6 Net excess of revenue  net earnings, increases retained earnings Net excess of expenses   net loss, decreases retained earnings Expense Accounts Salaries Advertising Pensions Contributions FRAME 7 The Expanded Accounting Equation A(+/-) = L(-/+) + SE(-/+) + R(-/+) - E(+/-) 
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This document was uploaded on 11/04/2011 for the course SPEA-V 246 at Indiana.

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CH2 FRAME 5-9 - FRAME5 Expense

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