Accrued expenses are recognized on the books before they have been billed or paid. Accrual accounting is the preferred accounting method under GAAP.

Expense Cash Method in Accounting. Expenses are an unavoidable cost of doing -- and staying in -- business. When a business incurs an expense, there are two accounting methods it may use to record ...

General and administrative expenses aren't directly attributable to the production of goods and services. They include audit fees, legal fees, rent, and utilities.

For example, employee training costs, losses on starting up and optimization of the equipment, routine maintenance, repair and operation costs for the equipment are all expensed.

Starting off with a system that’s too complex can lead to miscategorization of expenses, erroneous entries and an unusable ...

One of the areas where management has the most control, and therefore a key consideration of managerial accounting, is a company's selling and administrative expenses.

Should a small business use a cash or accrual accounting method? A CPA answers with examples.

Operating expenses are costs tied to the normal operations of a company. They include the day-to-day expenses of a company’s business activities, but exclude those involved in the production of ...

What are other examples of hidden expenses? Nonlevel rent — If a company has periods of free rent or rent escalations, its rent expense might not equal its cash rent payments. For example, a company ...