What are the types of expenses in accounting?

Types of Expenses

• Cost of Goods Sold (COGS) Cost of Goods Sold (COGS)
• Operating Expenses – Selling/General and Admin. Operating expenses are related to selling goods and services and include sales salaries, advertising, and shop rent.
• Financial Expenses.
• Extraordinary Expenses.
• Non-Operating Expenses.

What are the 11 accounting concepts?

The important concepts have been listed as below: Business entity; • Money measurement; • Going concern; • Accounting period; • Cost • Dual aspect (or Duality); • Revenue recognition (Realisation); • Matching; • Full disclosure; • Consistency; • Conservatism (Prudence); • Materiality; • Objectivity.

What are basic accounting concepts?

These basic accounting concepts are as follows: Accruals concept. Revenue is recognized when earned, and expenses are recognized when assets are consumed. Auditors will only certify the financial statements of a business that have been prepared under the accruals concept. Conservatism concept.

What are examples of expenses in accounting?

An expense is a cash payment, the portion of an asset used up during an accounting period or an item that directly reduces revenue. Examples include wages, supplies and rent payments; depreciation attributed to a piece of equipment or a vehicle; and a bad debt write-off.

What are the categories of expenses?

There are some high-level categories that all allowable expenses and costs fall under. These are: the cost of goods sold, operating expenses, selling expenses, general and administrative expenses, salaries and wages, payroll-related expenses, fringe benefits, employee recruitment, supply expense, rent expense,…

What are the types of operating expenses?

By Investopedia . Updated Jan 12, 2019. The primary types of operating expenses include payments that are related to compensation, sales and marketing, office supplies and non-facility fees. An operating expense tied to compensation could include pension plan contributions, sales commissions or benefits, and pay for non-production employees.

What is included in operating expenses?

Key Takeaways. Operating expenses are incurred in the regular operations of business and include rent, equipment, inventory costs, marketing, payroll, insurance, and funds allocated for research and development.