Freight Expense – Accounting explained

Freight expenses are also known as freight charges or freight rates. It is the amount paid to a carrier company for the transportation of goods from the point of origin to an agreed location. An income statement contains many aspects of financial information, including specific costs that are sometimes hard to categorize. Freight charges are … Read more

What is Amortization? Explained with example

In accounting, the amortization of intangible assets refers to distributing the cost of an intangible asset over time. You pay installments using a fixed amortization schedule throughout a designated period. And, you record the portions of the cost as amortization expenses in your books. Amortization reduces your taxable income throughout an asset’s lifespan. Amortization Explained … Read more

What are Administrative Expenses?

In accounting, general and administrative expenses represent the necessary costs to maintain a company’s daily operations and administer its business, but these costs are not directly attributable to the production of goods and services. Information on this type of expense is especially useful when calculating a company’s fixed costs. Administrative expenses definition Administrative expenses are … Read more

What are Accounts Expenses?

Expenses in accounting is the money spent, or costs incurred, by a business in its effort to generate revenues. Essentially, accounts expenses represent the cost of doing business; they are the sum of all the activities that hopefully generate a profit. What is an Expense? An expense is defined in the following ways: Office supplies use … Read more