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What is the definition of equipment and supplies?

Equipment is considered more permanent and longer lasting than supplies, which are used up quickly. Equipment includes machinery, furniture, fixtures, vehicles, computers, electronic devices, and office machines. Equipment does not include land or buildings owned by a business.

Does buying supplies affect net income?

Answer and Explanation: The transaction decreases net income because it increases the supplies expense.

What is purchasing of equipment?

As you already know, equipment procurement is the process of finding and purchasing the tools your company needs to operate effectively. This process aims to reduce your overhead by seeing what you need and working with the equipment you already have in-house.

Is net income increased with a credit?

Expenses are the result of a company spending money, which reduces owners equity. Therefore, expense accounts have a debit normal balance. If revenues (credits) exceed expenses (debits) then net income is positive and a credit balance.

Do supplies count as net income?

A key difference between business net income and personal net income is the business has already subtracted its overhead costs or general expenses, such as rent, utilities, payroll, and office supplies. An individuals net income doesnt account for those expenses.

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