What is an expense?
The expense means the amount of money paid to purchase various goods, facilities, services, or other varieties of cost that are needed in the organization to generate revenue. The common expenses consist of wages or salaries, bonuses, rent, gifts, reimbursements for travel, purchase of equipment, stationery, meals, tea or coffee, etc. According to the department of accounts in a company, there are two types of expenses, i.e., accrual and cash.
Types of Expenses:
- Operating expenses
- Extraordinary expenses
- Non-cash expenses
- COGS, i.e., Cost of Goods Sold
- Financial Expenses
- Non-operating expenses