Expenses Homework Help

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What is an Expense?

 

Money matters and we all try to save it as far as possible. Some for future prospects, some for future purchase. Anything that is purchased with respect to money is called as an expense. During a specified accounting period, any cost incurred by the company in order to keep going the business process is called as an expense. In this article of expenses homework help we give the following examples of expenses.
 

• Commissions earned by sale staffs
• Cost of goods sold
• Wages and salaries of employees
• Rent for the retail space etc.
 

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Types of Expenses

 

Although there are many expenses in an office starting from minimum to maximum level but all these are categorized, by our expenses homework help article writers, into 3 major classifications. They are
 

1. Rental expenses: The space that has been used up by the business needs to pay rent to either the proprietor or the government.
2. Wage expenses: The salaries and wages that are provided on monthly or daily basis to the workers come under wage expenses.
3. Interest expenses: For any small business loan, if any interest is coming up, the business have to pay it separately and it is termed as interest expenses.
 

Recording of Expenses

 

Our expenses homework help article states that, expenses are recorded on the debit side of the income statement account, and are installed with the help of double entry book keeping technique.
 

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