Expense Sheet (True Or False)?

Expense sheet recorded in income statement at the end of the year it doest not mean that all amount appeared have been paid, Provision, accural,assumptions, fundamental accounting princeple of follow to adjustment are recording in the income statement at the end of the year expenses sheet are, 1 million we should know that company gain all expenses at the end of the year. It is not true or false.

Answer is 

False

 

Expenses involved in primary activities are expenses that are incurred in order to earn normal operating revenues. Under the accrual basis of accounting sales commission’s expense should appear on the income statement in the same period that the related sales are reported, regardless of when the commission is actually paid. In the same way, the cost of goods sold is matched with the related sales on the income statement, regardless of when the supplier of the merchandise is paid.

 

Costs used up (or expiring) in the accounting period shown in the heading of the income statement are also considered to be expenses of that period. For example, the utilities used in a retail store in December should appear on the December income statement, even if the utility's meters are not read until January 1 and the bill is paid on February 1.

 

The above examples reflect the matching principle and show that under the accrual basis of accounting, expenses on the income statement are likely to be reported at different times than the cash expenditures/disbursements.

 

IF IT IS CASH BASIS ACCOUNTING WHICH IS FOLLOWED IN SOME COUNTRIES THEN IT SHOULD BE CONSIDERED WHAT EVER SHOWING IN THE STATEMENT TO BE PAID.

 

UNDER ACCRUAL BASIS ACCOUNTING EXPENSES PERTAINING TO THAT PARTICULAR ACCOUNTING PERIOD ARE BOOKED AND IT HAS NO LINK WITH PAYMENT. PAYMENT CAN BE MADE IN SUBSEQUENT YEAR WHICH WILL AFFECT THE BALANCE SHEET ITEMS AND NOT P&L ITEMS.

Its is false, Becuse we book expenses on accrual basis not on cash basis.

That's false. 

Because when you record an expense, it most obviously appears within a line item in the income statement. The income statement shows the financial results of a business for a designated period of time either a year,  a month or a week . An expense appears more indirectly in the balance sheet in the following ways:

An expense reduces profits, so when you record an expense, the retained earnings line item within the equity section of the balance sheet will always decline by the same amount as the expense. This change in equity always occurs. In addition, either the asset side of the balance sheet will decline or the liabilities side will increase by the amount of the expense, thereby keeping the balance sheet in balance.

Here are examples of where the changes may occur: 

Assets. Cash declines if you paid the expense item in cash, or inventory declines if you wrote off some inventory. Contra asset accounts . The accumulated depreciationcontra account increases if you created a depreciation charge.

Liabilities . Accrued expenses increase if you created an expense accrual, or accounts payable increase if you recorded a supplier invoice that is not yet paid.

In short, expenses appear directly in the income statement and indirectly in the balance sheet. It is useful to always read both the income statement and the balance sheet of a company, so that the full effect of an expense can be seen.

False....

An expense sheet is a form completed by employees to itemise the expenditures for which they are requesting reimbursement. Receipts are typically attached to the form if the related expenditure amounts exceed a certain minimum amount. The employer then examines the submissions for accuracy and validity, and pays employees the requested amounts. The employer can then record the reimbursed amounts as a business expense, which factors into the amount of accounting profit and taxable profit recognized.

Expense sheets can also be used to detail expenditures made against an initial employee advance. If so, the employer still records the submitted amounts as a business expense, but there is no reimbursement; instead, the employer deducts the expenditures from the amount of the employee advance.

An expense sheet can include a number of company-specific information fields, but usually requires at least the following core information:

§  Date on which an expenditure was incurred (matches the date on the related receipt)

§  The nature of the expense (such as airline tickets, meals, or parking fees)

§  The amount of the expense (matches the amount of the related receipt)

§  The account to which the expense should be charged

§  A subtotal for each type of expense

§  A subtraction for any prior advances paid to the employee

§  The grand total of the amount of reimbursement requested

An expense sheet form may also include a summary of the employer's travel and entertainment policy, which defines which expenditures will not be reimbursed by the company (such as in-room entertainment expenditures).

 

The expense sheet concept can also refer to a detailed listing of expenses incurred by each department of a company for a sheeting period. This information is examined to see if any actual expenses incurred were different from expectations, in which case management can investigate the reasons for these variances.

Hello Team,

Worksheet will help you to identify expenses that can be reduced and prevent impulse spending. The process may be time consuming, but it is vital to gaining control of your finances. 

After you have calculated the total of your existing expenditures, add your income information. For this, it might be helpful to refer to your Income Worksheet.

Subtract the amount of your total monthly expenses from the amount of your monthly net income. If your expenses exceed your income, rest assured that there are ways to balance the budget.

Keep your Expense Worksheet handy — it will soon become your roadmap to financial wellness.

Regards,

Saiyid

I agree with experts answer. Thanks for the invite. 

Thanks for the invite ............................ correct

TRUE IS THE RIGHT ANSWER.........................

True. A supporting document for all expenses and can be also termed as a Subdiary Ledger. This will determine history of expenses and will the basis in the preparation of budgets and other financial forecasts.