These expenses are not initially recorded on a company’s income statement for the period when the money changes hands. Instead, prepaid expenses are first recorded on the balance sheet as an asset.

it’s necessary to understand operating expenses. In a company’s income statement, revenue represents the top line figure for the amount of money generated from the sale of goods and services.

What is depreciation? Learn how it works, the main methods and how it impacts your business taxes and accounting.

interest expense is generally the primary financing expense on a company's income statement. Here we look at interest expense in the context of evaluating a company's profitability, as well as its ...

The company credits the accounts receivable account on the balance sheet and debits the bad debt expense account on the income statement. Under the allowance method, an uncollectible customer’s ...