Expenses




All Outflows of the business for earning is called Expenses. According to SFAC 6 as “outflows from delivering or producing goods, rendering services or carrying out other activities that constitute the entity’s ongoing major or central operations” (Para. 80). Expenses are economic costs that a business incurs through its operations to earn Revenue.

 

expenses

 

>> Read Golden Rules of Accounting.

References

Mukharji, A., & Hanif, M. (2003). Financial Accounting (Vol. 1). New Delhi: Tata McGraw-Hill Publishing Co.

Narayanswami, R. (2008). Financial Accounting: A Managerial Perspective. (3rd, Ed.) New Delhi: Prentice Hall of India.

Ramchandran, N., & Kakani, R. K. (2007). Financial Accounting for Management. (2nd, Ed.) New Delhi: Tata McGraw Hill.

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