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9 give five common account titles their description

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9. Give five common account titles, their description and examples of anincome.from
10. Give five common account titles, their description and examples of anexpense.
ExpensesDecreases benefits in the form of decreases in assets, maybeincrease in liabilities and may result decrease in equity.Examples;a)Cost of Sales (Cost of Goods Sold)The value of inventories thathave been sold during the period.b) Freight-OutCost of delivering goods to customers. Also refers to“delivery expense”, “transportation out”, and “carriage outwards”.c)Salaries ExpenseSalaries earned by employees for the servicesthey have rendered during the accounting period.d) Rent ExpenseRentals that havebeen used upduring theaccounting period.e)Utilities ExpenseThecostof utilities that have been used duringthe accounting period. (E.g., electricity, water, internet, telephone,cable, TV).f)Supplies ExpenseThecostof supplies that havebeen usedduring the accounting period.g) Bad Debt ExpenseThe number [amount] ofestimated lossesfrom uncollectible accounts receivable. Also called “DoubtfulAccounts Expense”.h) Depreciation Expense– Portion of the costof adepreciableasset (e.g., building/equipment)that has been allocated to thecurrent accounting period.i)Advertising ExpenseThe cost of promoting (e.g., products) viamedia etc. or marketing activities during the period.j)Insurance ExpenseRepresent thecost of insurancepertaining tothe current accounting period.k) Taxes and LicensesRepresents thecost of businessandlocaltaxesrequired by the government for the conduct of business.l)Transportation and travel expenseTransportation expensesrepresent the necessary andordinary cost of employees getting from one workplace toanother which arereimbursable[*pay back//refund]by thebusiness,e.g.,reimbursable taxi fares of employees runningsome errands and those who are working on late shifts.Travel expensesrepresent thecostsincurred when travellingon business trips,e.g.,out-of-town travel costs of employeessent to seminars.m)Interest expense-Represents the cost of borrowing money. It is theprice that a lendercharges[demand payment] a borrower for theuse of the lender's money.n) Miscellaneous expense-Represents various small expenditureswhich do not warrant separate presentation.

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Term
Summer
Professor
N/A
Tags
Balance Sheet, Double entry bookkeeping system, business owner

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