In this section, we’ll explain the accounting of expenses that are reported in the income statement of an entity. By…
Payroll outsourcing refers to an arrangement where an organization uses an external service provider to manage its payroll tasks. In…
Let’s take a look at the following example related to recording payroll expenses. A company is processing its payroll for…
In countries where income tax is applicable on the salaries of employees, “payroll tax deduction at source” mechanism is often…
Payroll accounting refers to the accounting of salaries, wages and benefits payable to employees as a result of their employment.…
In financial reporting, allocation of expenses means spreading the common expenses into different expense categories reported in the financial statements.…
There are different types of expenses. In the income statement, expenses are categorized into a few major classifications (for e.g.,…
Expenses incurred but not yet billed and paid are called accrued expenses. Whereas, expenses paid in advance are called prepaid…
Cost incurred by an entity to generate revenues is known as expense. To make money, you have to spend as…
In this section, we’ll explain the accounting of income arising from the principal business activities as well as income from…