EXPENSE

Expenses are the cost of the goods and services used up in the process of earning revenue.For example the cost of employees salaries,advertising,rent,utilities depreciation of such as building automobile and office equipment.All these cost are necessary to attract and serve customers and there by earn revenue.An expense always causes a decrease in owner equity.the related changes in the accounting equation can be either,A decrease in assets or an increase in liabilities.An expense reduces assets if payment accour  at the time that the expense is incurred. if the expense will not be paid until later. Expense are incurred for the purpose of producing revenue.Revenue should be offset by all the expenses incurred in producing that revenue .this concept of offsetting expense revenue on a basis of cause and effect is the called matching principle.

EXPENSES:
Transporting expenses
salaries expense
Advertisement expense
Traveling expense
Rent expense
office expenses
Telephone expenses
Conveyance expenses
Entertainment expenses
Postage Expenses
Depreciation Expense
Bad debts expense