Sundry expenses are costs which may be relatively small or occur infrequently and are therefore not assigned to a specific ledger group. They are also known as miscellaneous expenses and are classified together as a grou... More »

Operating leases are treated as rental expenses for the lessee, and refer to contracts that permit use, but not ownership, of an asset. Operating leases are accounted for through the recording of periodic payments on the... More » Business & Finance Business Resources Accounting

Static budgets are typically used by companies that do not expect sales and expenses to vary much during the budgeted period. A static budget is set before the budgeting period begins and stays the same throughout the pe... More »

A profit and loss statement, or P&L, shows income and expenses over a period of time, such as a month, quarter or year. Categories of income and expense include those normally used by the business. More » Business & Finance Business Resources Accounting

The process for writing a budget for a nonprofit organization is similar to that of a traditional business, which includes setting the term of the budget, calculating expenses and estimating potential income. However, th... More » Business & Finance Business Resources Accounting

The primary drawback of using reversing entries is that if the accountant forgets to do it, revenues or expenses can end up being overstated, depending on the transaction. Benefits include a greater degree of accuracy, e... More » Business & Finance Business Resources Accounting

Companies use adjustment entries to align expenses and revenues to the accounting period where they occurred. The process ensures that all income, expense, asset and liability accounts reflect their true values when repo... More »