A word used by accountants to communicate that an expense has occurred and needs to be recognized on the income statement even though no payment was made. The second part of the necessary entry will be a credit to a liability account.
What is Incurred?
an item is reported as revenue when a service has been performed or the ownership to a product has been transferred from the seller to the buyer (not when cash is received).
What is a Earned (Revenue)$
Increases or credits to the company's bank account, such as notes or accounts collected by the bank and/or interest income earned.
What is a Credit Memo (CM)?
An account brought into existence as a debit to balance expense accounts or as a credit to balance revenue accounts in the closing entry process. The revenue and expense account balances are transferred to this account to allow calculations of net income or net loss.
What is the Income Summary Account?
Income Summary Account closes into what account?
What is the Owners Equity Account