Expenses
Expenses are costs of running a legal entity that may or may not produce revenue. Expenses is a subdivision of owner's equity. Expenses are found on an income statement and particularly can be used to reduce the amount of tax owed to the government.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Expenses. A cost incurred in running a business by consuming goods or services in producing revenue. Expenses is a subdivision of owner's equity.
Related concepts
- Bookkeeping. Recording, filing, and retrieving of financial data, as well as producing those financial reports that are required by laws.
