Direct Expenses:
Direct expense is an expense incurred that varies directly with changes in the volume of a cost object. A
cost object is any item for which you are measuring expenses, such as products, product lines, services,
sales regions, employees, and customers.
List Of Direct Expenses
salaries,
insurance,
depreciation of equipment,
equipment maintenance,
facility rent,
utilities,
office supplies, and.
Indirect Expenses:
Indirect expenses are those expenses that are incurred to operate a business as a whole or a segment of
a business, and so cannot be directly associated with a cost objecttising and marketing.
List Of Indirect Expenses :
Accounting, audit, and legal fees.
Business permits.
Office expenses.
Rent.
Supervisor salaries.
Telephone expense.
Utilities.
Accrued Expenses:
Accrued expenses are expenses that have occurred but are not yet recorded in the company's general
ledger. This means these expenses will not appear on the financial statements unless an adjusting entry
is entered prior to issuing the financial statements.
Example of an Accrued Expense:
To illustrate an accrued expense, let's assume that a company borrowed $200,000 on December 1. The
agreement requires that the company repay the $200,000 on February 28 along with $6,000 of interest
for the three months of December through February. As of December 31, the company will not have an
invoice to process and will not be paying the interest until it is due on February 28.
current liability:
amounts due to be paid to creditors within twelve months.
List Of Current Liabilities:
Accounts payable. These are the trade payables due to suppliers, usually as evidenced by supplier
invoices.
Sales taxes payable. ...
Payroll taxes payable. ...
Income taxes payable. ...
Interest payable. ...
Bank account overdrafts. ...
Accrued expenses. ...
Customer deposits.
Definition of Long-term Liability:
A long-term liability is an obligation resulting from a previous event that is not due within one year of
the date of the balance sheet (or not due within the company's operating cycle if it is longer than one
year). Long-term liabilities are also known as noncurrent liabilities.
List of Long-term Liabilities:
Some examples of long-term liabilities are the noncurrent portions of the following:
bonds payable
long-term loans
pension liabilities
postretirement healthcare liabilities
deferred compensation
deferred revenues
deferred income taxes
customer deposits
Current Assets:
cash and other assets that are expected to be converted to cash within a year.
Cash.
Cash Equivalents.
List Of Current Assets:
Cash , Cash Equivalent
Short-term Deposits.
Marketable Securities.
Accounts Receivable.
Work in Progress.
Raw Materials.
Finished Goods / Inventory.
Fixed Assets:
assets which are purchased for long-term use and are not likely to be converted quickly into cash, such
as land, buildings, and equipmen.
List Of Fixed Assets :
Buildings. Includes all facilities owned by the entity.
Computer equipment. ...
Computer software. ...
Construction in progress. ...
Furniture and fixtures. ...
Intangible assets. ...
Land. ...
Leasehold improvements
Preliminary Expenses:
Preliminary expenses are those expenses which are incurred in business before incorporation and
commencement of business, like statuary fees ,company logo, survey report, project report etc are
called preliminary expenses.
Example Of Preliminary Expenses:
Some examples of such expenses incurred before business incorporation are; Legal cost, Professional
fees, Stamp duty, Printing fees, etc. Also known as pre-operative expenses, they are shown on the asset
side of the balance sheet and are preferably amortized within the same year (depending on local laws).
Earned Revenue:
Earned revenue. Revenue a company derives from its operations. For example, if a company sells its
inventory and receives money, it is earning revenue. This contrasts with revenue from other sources,
such as the company's investments, and from profit, which is revenue less expenses.
Example Of Earned Revenue :
Often the term income is used instead of revenues. Examples of revenue accounts include: Sales, Service
Revenues, Fees Earned, Interest Revenue, Interest Income. Revenue accounts are credited when
services are performed/billed and therefore will usually have credit balances.
Unearned Revenue:
A liability account that reports amounts received in advance of providing goods or services. When the
goods or services are provided, this account balance is decreased and a revenue account is increased.
Example Of Unearned Revenue:
Examples of unearned revenue are rent payments made in advance, prepayment for newspaper
subscriptions, annual prepayment for the use of software, and prepaid insurance. As a company delivers
services or products, deferred revenue is gradually recognized on the income statement as the revenue
is "earned."
