What are the 4 types of expenses?
You might think expenses are expenses.
If the money’s going out, it’s an expense.
But here at Fiscal Fitness, we like to think of your expenses in four distinct ways: fixed, recurring, non-recurring, and whammies (the worst kind of expense, by far)..
What are the 3 golden rules of accounting?
Debit the receiver and credit the giver. The rule of debiting the receiver and crediting the giver comes into play with personal accounts. … Debit what comes in and credit what goes out. For real accounts, use the second golden rule. … Debit expenses and losses, credit income and gains.
What type of account is expense?
Expenses are income statement accounts that increase the debit side of a contra account. When the expense is recorded, a corresponding credit is recorded to an asset or liability.
Are expenses considered equity?
Revenue has a credit balance and increases equity when it is earned. Expenses – Expenses are essentially the costs incurred to produce revenue. Costs like payroll, utilities, and rent are necessary for business to operate. Expenses are contra equity accounts with debit balances and reduce equity.
Is revenue an asset or equity?
Effect of Revenue on the Balance Sheet Generally, when a corporation earns revenue there is an increase in current assets (cash or accounts receivable) and an increase in the retained earnings component of stockholders’ equity .
What accounts are equity?
These accounts include: common stock, preferred stock, contributed surplus, additional paid-in capital, retained earnings, other comprehensive earnings, and treasury stock. Equity is the amount funded by the owners or shareholders of a company for the initial start-up and continuous operation of a business.