INCOME STATEMENT: (EXPENSES)

Supplies Expense

refers to the cost of supplies used or consumed during the period

Insurance Expense

refers to costs paid to insurance companies for the financial protection or reimbursement from losses such as fire, flood, and other calamities

Utilities Expense/Light and Water Expense

refers to the cost of electricity and water consumed

Repairs and Maintenance Expense

refers to the cost of repairing and servicing (materials plus labor) certain assets like building, furniture and fixtures and equipment.

Salary Expense

refers to the amount paid for the services of employees working in the business.

Interest Expense

refers to the cost of borrowing money used by the business.

Advertising Expense

is the cost of publications in the newspapers, calling cards, billboards and propaganda through radios and televisions.

Depreciation Expense

is the portion of the cost of fixed assets like building, furniture and fixtures and equipment, which are allocated to the current period. It is an estimate for the period of the decrease in the value of the asset due to obsolescence and wear and tear.

Commission Expense

refers to the cost paid to an agent for services rendered.

Rent Expense

is the amount paid for the use of a space for the store, working area or office of the business.

Taxes and Licenses

include business taxes, licenses, registration fees and other fees paid to the government.

Communication expense

includes amounts incurred for communications being used or consumed by the business such as postage, telephone bills, prepaid cards and internet fees

Freight out or Delivery Expense

refers to the cost of gasoline and oil used and other related expenses incurred in transporting goods to customers

Bad Debt Expense or Doubtful Accounts Expense

refers to losses from accounts receivable that proves to be uncollectible or doubtful of collection.

• Commission Expense

• Advertising Expense

• Rent Expense

• Depreciation Expense

• Salary Expense

• Bad Debt Expense

• Communication expense

• Delivery Expense

• Taxes and Licenses

• Repairs and Maintenance Expense

• Utilities Expense

• Supplies Expense

• Insurance Expense

• Interest Expense

EXPENSES