List of Expense Accounts 6.
Insurance Expense - insurance premiums
1. Cost of Sales - also known as Cost of Goods
Sold, it represents the value of the items sold to
customers before any mark-up. In
merchandising companies, cost of sales is
normally the purchase price of the goods sold,
including incidental costs. In manufacturing
businesses, it is the total production cost of the
units sold. Service companies do not have cost
of sales.
Purchases - cost of merchandise
acquired that are to be sold in the
normal course of business. At the end
of the period, this account is closed to
Cost of Sales.
Freight in - If the business shoulders the
cost of transporting the goods it
purchased, such cost is recorded as
Freight-in. This account is also closed to
Cost of Sales at the end of the period.
2. Advertising Expense - costs of promoting the
business such as those incurred in newspaper
publications, television and radio broadcasts,
billboards, flyers, etc.
3. Bank Service Charge - costs charged by banks
for the use of their services
4. Delivery Expense - represents cost of gas, oil,
courier fees, and other costs incurred by the
business in transporting the goods sold to the
customers. Delivery expense is also known as
Freight-out.
5. Depreciation Expense - refers to the portion
of the cost of fixed assets (property, plant, and
equipment) used for the operations of the
period reported
paid or payable to an insurance company who
accepts to guarantee the business against losses
from a specified event
7. Interest Expense - cost of borrowing money
8. Rent Expense - cost paid or to be paid to a
lessor for the right to use a commercial
property such as an office space, a storeroom, a
building, etc.
9. Repairs and Maintenance - cost of repairing
and servicing certain assets such as building
facilities, machinery, and equipment
10. Representation Expense - entertainment
costs for customers, employees and owners. It
is often coupled with traveling, hence the
account title Travel and Representation
Expense.
11. Salaries Expense - compensation to
employees for their services to the company
12. Supplies Expense - cost of supplies (ball
pens, ink, paper, spare parts, etc.) used by the
business. Specific accounts may be in place such
as Office Supplies Expense, Store Supplies
Expense, and Service Supplies Expense.
13. License Fees and Taxes - business taxes,
registration, and licensing fees paid to the
government
14. Telecommunications Expense - cost of
using communication and telephony
technologies such as mobile phones, land lines,
and internet
15. Training and Development - costs for the
enhancement of employee skills
16. Utilities Expense - water and electricity
costs paid or payable to utility companies