What is an intertemporal amortization account? Help me explain it in layman s terms .

The intertemporal amortization account mainly includes the account of expenses to be amortized and the accounts of expenses to be provided. The expenses to be amortized are actually expenses that are paid first and then apportioned, which are mainly in the nature of assets. Provision expenses are actually estimated expenses and are mainly liabilities in nature.

What they all have in common is that the earnings period is a number of accounting periods (months).

Some of the expenses incurred by an enterprise in the process of production and operation are intertemporal and should be borne jointly by several accounting periods. In order to correctly calculate the profit and loss of each accounting period, it is necessary to strictly divide the vesting period of expenses according to the principle of income according to the requirements of accrual accounting, and for this purpose, it is necessary to set up an inter-period amortization account. Such as "long-term amortized expenses" and "withholding expense accounts".

The structure of the intertemporal amortization account is: the actual amount of expenditure on the debit side of the recorded expense; The credit registers the amount of expenses incurred for each accounting period. The amount of expenses to be amortized that have not yet been amortized.

The closing balance of the "Provision for Expenses" account is generally credited and represents the amount of the provision that has been provided for but not yet paid. In some cases, the closing balance of the "provision for expenses" account is also debited, for example, if the amount of expenses charged to each period is small and the amount actually paid is large. There is a debit balance in the Provision Expense account, which represents the amount of expense to be amortized that has been paid but not yet amortized.

Inter-period allocation accounts are accounts used to account for and supervise expenses that should be shared by several accounting periods and paid at once in a certain accounting period. Mainly: expenses to be amortized, withholding expenses, etc.

These accounts are set up on an accrual basis.

Inter-period allocation accounts are accounts used to account for and supervise expenses that should be shared by several accounting periods and paid at once in a certain accounting period. Mainly: expenses to be amortized, withholding expenses, etc.

These accounts are set up on an accrual basis.

Accounting for intertemporal amortization accounts:

There are two types of expenses accounted for in the intertemporal amortization account:

1) Some expenses are paid in a lump sum, but according to the benefit period, they need to be included in the production cost or period expenses in the current period and subsequent periods. If you subscribe to newspapers and magazines, you have to pay for a number of months at a time, but you should only pay for that month. Therefore, the subscription fee paid should be included in the amortized expenses first, and then allocated to the relevant expenses;

2) Some expenses are incurred gradually, but the settlement method requires that they be paid after a certain number of periods. For example, the interest on bank loans is paid once every three months on a quarterly basis according to its settlement method, and the borrowing unit plays a role every month, so although the interest on the loan has not yet been paid, it must be included in the relevant expenses every month and withdrawn in advance. Intertemporal amortization accounts include the "Expenses to be amortized" account and the "Expenses to be provided" account.

Answer]: B The accrual basis requires that all the income realized in the current period and the expenses that have been incurred or should be borne should be regarded as the income and expenses of the current period and included in the income statement, regardless of whether the payment is received and paid; Income and expenses that are not part of the current period should not be made even if the money has been received and paid in the current period"-3 as the current period of income and expenses. Therefore, the branch disadvantage is to choose B early.

Answer: b

b [Analysis] is set according to the accrual principle, and the costs and expenses that have been incurred should be recognized by the lead collection in the later period, and shall be borne by the subsequent period.

1. Pay the monthly house lease fee of 3,000 yuan with bank deposit, and borrow: the cost to be amortized - the rent is 3,000

Credit: Bank deposit 3000

In July, 1,000 yuan should be amortized this month, borrowing: management expenses - rent 1000 loan: expenses to be amortized - rent 1000

2. The interest on short-term loans that should be borne this month is 600 yuan.

Borrow: financial expenses - 600 interest on bank borrowing

Credit: Withholding expenses - interest on bank borrowings 600

The intertemporal amortization account is set up for the requirements of the accrual basis, but at this stage, the intertemporal amortization account is no longer used in principle.

An intertemporal amortization account is an account that is used to account for and supervise the costs that should be shared by the costs of each adjacent costing period or the relevant profit or loss objects, and to allocate such expenses in each costing period according to certain standards, so as to correctly calculate the cost of products. The setting up of such accounts is required on an accrual basis. There are three such accounts: the "amortized expenses" account, the "long-term amortized expenses" account and the "withholding expenses" account.

The account structure is: the amount incurred (paid) by the debit side of the registration fee, the amount of the amortization or withholding amount of the merchant registration fee, and the closing balance may be debit or merchant. The balance represents expenses incurred or paid but not yet apportioned as of the current period on the debit side, and expenses that have been withdrawn as planned and are pending at a later date or incurred on the merchant side.

Intertemporal amortization account: It is an account that reflects and monitors the expenses that should be borne by several accounting periods, and apportion and provide for these expenses in each accounting period.

Hello classmates, I'm glad to answer for you!

Inter-period allocation accounts are accounts used to account for and supervise expenses that should be shared by several accounting periods and paid at once in a certain accounting period. Mainly: expenses to be amortized, withholding expenses, etc.

These accounts are set up on an accrual basis.

Gordon wishes you a happy life!