Tag Archives: expenses

Let’s break down what an “account” means in business and accounting. Imagine a company has many different things it owns, and different things it owes to others. To keep track of all of these, we use “accounts”. An account is like a special page or folder in a book (called …

In the world of finance, discounts are a common occurrence. But have you ever wondered what “discounts allowed” mean and how they’re handled in bookkeeping? This article will explain everything you need to know, including why they’re issued and how to record them in the 3 column Cash Book. What …

Studying principles of accounts can be very easy once you learn which items are Assets, Liabilities, Capital, Income and Expenses. The accounts that fall under these 5 headings are used throughout your POA course. You can even associate the ALICE accounts with action words, you OWN assets, OWE liabilities, EARN …

Expenses are the goods, services and charges that a business incurs as it functions. It has a debit balance in the ledger accounts when it increases and a credit balance when it decreases. The cost of expenses in relation to earned income determines whether the business makes a profit or …