Study Set Content:
This is the rental earned on the properties of
the business.
Rent Income
This is the appropriate title for income
derived from an enterprise selling services,
instead of merchandise or products.
Service Income
This is the amount earned for the lending of
money.
Interest Income
They represent the consumption of assets
or utilization of services of other business
entities to generate revenues. These are the
accounts used to record transactions
involving payment for expenses incurred.
They decrease the assets and owner’s
equity.
Expenses
These are wages of employees that are
connected with the administrative phases of
the business.
Salaries Expenses
This is compensation granted to employees
that are usually computed or based on the
amount of their sales.
Commission Expenses
This is the allowance given for travel
expenses.
Traveling Expenses
These are expenses used for postage and
other means of communication.
Postage and Communication Expenses
These are the amounts of taxes incurred
Taxes Expenses
These include the cost of electricity, water,
and fuel consumed by the business.
Utilities Expenses
These are the premiums or insurance
policies paid and incurred by the business.
Insurance Expenses
These are expenses for repairing or
servicing the buildings, and pieces of
equipment and machinery of the business.
Repair and Maintenance Expenses
These are the amount paid for the lease
and occupation of property premises.
Rent Expenses
This is the sum added to the principal of
money obligations.
Interest Expenses
These include expenses in connection with
marketing and promoting the products.
Advertising Expenses
With the passage of time, all plant assets
with the exception of land lose their
productivity and value.
Depreciation Expenses
These are expenses incurred other than
those given above.
Miscellaneous Expenses
are considered the economic resources.
assets
On the other hand, liabilities are regarded as the
“outsider claims”
is regarded
as the “insider claims” in its resources.
owner’s equity
