In order to generate revenue from business operation, the cost incurred is called the expense. It is also explained as the consumption of the assets of the company. In accounting, expenses are recorded irrespective of the cash outflow. It means that an entity has to record electricity expenses in the relevant month, no matter the bill is paid into the next month.
List of Expense Accounts
The list is very large. We are listing down some very common expense accounts list:
- Utilities expense
- Salaries expense
- Fuel expense
- Rent expense
- Supplies expense
- License expenses
- Telephone expense
- Electricity expense
- Sales tax expense
- Income tax expense
- Bad debt expense
- Depreciation expense
- Commission expense
- Miscellaneous expense.