Expense Homework Answers
Accounting expenses are those which are incurred by a business unit for its upkeep and day to day running. It refers to every item of outflow from companyâ€™s accounts. Expenses range from salaries to employees to discounts to customers.
Importance of recording expenses
Ever business unit, whether individual proprietorship, partnership or company has to account for every single penny spent by it.
- Proper recording of expenses is necessary to find out exact profits.
- It helps to keep expenses under control by avoiding unnecessary ones.
- Recurring expenses can be regulated properly with accurate records. By knowing how much discount was offered to customers in lean periods, companies can plan strategies for future.
- Recording capital expenses like amount spent on buildings and machinery will help to ascertain its actual value after depreciation.
Coping with accounting expenses homework answers
When you take accountancy as your area of specialization for higher studies, you should be prepared for the types of assignments you may be given. Problems related to accounting expenses are major area of homework. Learning how to classify various items of expenses under proper subheads is a task in itself. If you are clear in concepts and have an eye for details, mastering expenses homework answers are easy.
Categorizing accounting expenses
While doing assignments, you need to be thorough with classifying expenses under correct accounts. Let us have a look at major expense categories.
- Operating expenses:
This includes all expenses which are incurred for operating business. It is an ongoing expense which means it has to be repeated at regular intervals so as to keep the business unit running. Salaries and rent paid, administrative expense all come under this category.
- Capital expenses:
All money spent on acquiring fixed assets qualify as capital expense. Generally, you can say that all expenses that provide benefits over a long period can be included in capital category. Amount spent to buy land, machinery, etc. come under this.
- Financing expenses:
Cost of acquiring capital is called as financing expense. This mainly includes interest paid on loans acquired. Financing is a major area for corporates as they invariably have to rely on external sources for fund requirements. If you are planning a career in corporate sector, it would be good to learn more about financing expense.
Learning proper classification will take you a long way in getting correct expenses homework answers.
Tricky areas in accounting expenses
Though all expenses need to be recorded properly, there are some items which pose difficulties to student. Let me list out of a few of them.
Depreciation refers to the provision for wear and tear of fixed assets. As assets get used up, their value diminishes over time. Thisis treated as an expense for purposes of accounting. What confuses students is that this does not involve any actual cash outflow. These types of non-cash expenses are to be understood properly to get expenses homework answers correctly.
- Accrued expenses:
This refers to all items of expenditure which are due for payment but has not been paid. Strictly speaking, they find a place in accounting ledger only when paid. But till that time, they deserve a place in income statements as a liability. So remember, if an expense is not paid, donâ€™t ignore it entirely. Be sure to show it in balance sheets.
- Direct and indirect costs:
Students often struggle to classify expenses into direct and indirect categories. This is applicable for manufacturing concerns. In simple terms, all expenditure directly related to manufacturing will be classified as direct and others as indirect.
- Overhead charges:
Though the term sounds bombastic, it simply another usage for indirect or operating expenses. All expenses required to run business which cannot be directly attributed to a particular product can be called overheads.
The tricky part about accounting language is different usages for a single item. Learn all usages for each category of expense to become an expert.
Should you take online help for accounting expenses homework?
As I already mentioned, analyzing, classifying and recording expenses is tricky and time-consuming. If help is available at your fingertips, there is no harm in availing it. There are people who argue that homework should be completed by students themselves.
Though true to an extent, it is not feasible considering fact pace of life of students. Professional homework help websites help you in different ways.
- Less error:
When you entrust your work to experts, chances of errors creeping in are very less. On the other hand, when you do by yourself, you might go wrong inplaces which will rob you of precious marks.
- Timely completion:
Everyone wants to complete assignments in time. When deadlines are very close by, you get tensed and make mistakes. So the better option is to entrust it to experts, submit it on time and take your time to understand later on.
- Better grasp over concepts:
In a classroom, there is a limit to the number of times you can raise doubts. With online tutors, there is no need for such embarrassment. You can ask any number of questions and get them answered in record time.
If you are not sure about being able to complete expense homework answers in time, try a reliable website next time.
Beware of false players
Like every field, the area of online teaching assistance also has its share of fraudsters. Once you get duped, you develop a general aversion for online assistance. Be careful before making your choice in the first place.
- Check for the credentials of the site. If possible, ask others who might have tried their services.
- See whether they have a group of experts to assist students. Remember, accounting is no job for a layman.
- Payment for services is yet another important aspect. If the site is charging a bomb for services, there is no point in availing it. At the same time, donâ€™t accept services which are dirt cheap as their quality might be poor. Look for a good combination of quality and price.
If you are alert and research properly before selecting an online service, no doubt you are going to score well in expense homework answers.