ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Financial expenses are expenses associated with any financing the company incurs, including interest from debt. Tax expenses are reported below the profit before tax line and are the expenses owed to authorities as a result of profits generated in the accounting period.

Detailed explanation-2: -In short, expenses appear directly in the income statement and indirectly in the balance sheet. It is useful to always read both the income statement and the balance sheet of a company, so that the full effect of an expense can be seen.

Detailed explanation-3: -Expenses are income statement accounts that are debited to an account, and the corresponding credit is booked to a contra asset or liability account.

Detailed explanation-4: -Cost of Goods Sold. Operating Expenses. Financial Expenses. Extraordinary Expenses. Non-Operating Expenses.