 |
Accounting Study Guide |
|
| CPAClass.com | GAAP | Study |
Examples of Expense and Loss Accounts
| Financial Statements Overview |
| Expenses and Losses |
| Operating Expenses |
| Operating expenses include expense accounts that are necessary to earn operating revenues. |
 Cost of sales (or cost of goods sold) Selling, General and
Administrative Expenses (SG&A Expenses) |
| Selling, General and Administrative Expenses include the following accounts. |
|
Salaries expense Sales salaries expense (Salaries
expense for sales personnel) Insurance expense Property tax expense Rent expense Utilities expense |
| Nonoperating Expenses and Losses |
| Nonoperating expenses and losses include expense and loss accounts that are due to the transactions other than the primary operations of the company. |
|
Interest expense Loss on sale of securities Loss on sale of buildings Loss on sale of machinery Loss on sale of equipment |
| Interest expense account may be classified as operating expenses for banks and other financial corporations, whose primary operations are lending money to earn interest income. |
| Losses from Discontinued Operations |
| Losses from discontinued operations are due to the disposal of business segment. |
|
Loss from operations of discontinued business segment Loss on disposal of business
segment |
| Extraordinary Losses |
| Extraordinary losses include losses that unusual and infrequent. |
|
Loss on early extinguishment of debt Loss from fire Loss from flood Loss from earthquake |
| Losses due to Changes in Accounting Method |
| Cumulative effect of changes in accounting method is reported as either gain or loss in the income statement of the current period. |
|
Cumulative effect of changes in depreciation method |
|
|
|
|
|
|
|
|
|
|
| Copyright
©
1999-2007 by AccountingStudy.com.SM
All Rights Reserved. All trademarks are properties of their respective companies. |
|
|