Lesson 5a: Revenue and Expense Accounts
Michael Sack Elmaleh, C.P.A., C.V.A.
As the table below shows revenue and expense accounts are sub-categories of equity.
There are numerous types of revenue and expense accounts. The collection of all asset, liability, equity, revenue and expense accounts is called the general ledger accounts. Some of the more typical revenue and expense accounts are described below.
- Sales: income from selling goods to customers.
- Interest Income: income from lending money or extending credit to customers.
- Rental Income: income from leasing property.
- Service Fees: income from the provision of services such as law, medicine, and accounting.
- Cost of Goods Sold: costs of products sold to customers.
- Salaries and Wages: payments to employees for services provided.
- Rent: payments for the use of real property.
- Utilities: payments for heating, electric, and other utility services.
- Office Expense: a broad category of expenses related to office administration.
- Payroll Taxes: the employer’s share of Social Security, Medicare and unemployment taxes associated with salaries and wages.
- Professional Fees: costs of services provided by outside advisors, such as attorneys and accountants.
- Advertising: costs associated with the promotion of a firm’s products or services.
- Phone: costs for telephone services.
- Repairs and Maintenance: costs of repairs and maintenance to property and equipment.
- Travel: costs for use of automobiles, other transportation, and lodging expenses associated with business travel.
- Meals and Entertainment: costs of business related meals and entertainment.
- Depreciation: the portion of a fixed asset’s original cost recognized in a specific accounting period.
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