In this section, we’ll explain the accounting of expenses that are reported in the income statement of an entity. By…
In the modern business world, outsourcing of support functions is becoming more and more common. Human resource and payroll functions…
Let’s take a look at the following example to understand how the payroll expenses are recorded. A company is processing…
In countries where income tax is applicable on the salaries of employees, “tax deduction at source” mechanism is often used…
Most businesses usually have employees working for them. If there are employees, the entity has to account for the salaries,…
In previous post, we learnt that in the income statement, expenses are categorized into a few major classifications (for e.g.,…
In the income statement, expenses are categorized into a few major classifications (for e.g., cost of sales, admin expenses, selling…
In cash basis of accounting, you’ll not see the terms accrued expenses or prepaid expenses. Entities simply record expense when…
Costs incurred by an entity to generate revenues is known as expenses. To make money, you have to spend as…