Bookkeeping

A period cost is typically selling, general and administrative costs expensed on the income statement when it is incurred. On a traditional income statement, costs or expenses are classified as product or period. On a contribution margin income statement, costs or expenses are classified as variable or fixed. Regardless of how the costs are classified, […]

Liabilities are listed on a company’s balance sheet and expenses are listed on a company’s income statement. Expenses can be paid immediately with cash or the payment could be delayed which would create a liability. It’s a long-term liability if a business takes out a mortgage that’s payable over a 15-year period but the mortgage