Expenses| what is expenses in accounting ? - Commerce Ka Ladka -commerce in easy language

Expenses

Related: Venture Capital

The costs incurred by a business or individual in the process of earning revenue.

Related: What Is Dividend?

In accounting, expenses refer to the costs incurred by a company or organization in order to generate revenue or carry out its operations. This can include a wide range of costs, such as salaries and wages, rent, utilities, supplies, and other costs associated with running a business.

Related: Depreciation

Expenses are an important part of financial accounting, as they are used to calculate a company's net income or profit. Net income is calculated by subtracting a company's total expenses from its total revenue, and it provides an important measure of the company's financial health.

Related: Cost of goods sold

Expenses are typically categorized into different types, such as operating expenses, administrative expenses, and cost of goods sold. Each type of expense represents a different type of cost associated with running a business, and understanding these different types of expenses is important for financial planning and management.