Role of Accounting in Business, what is Expenses
Accounting plays a crucial role in business by providing financial information that helps businesses make strategic decisions, track performance, and comply with regulatory requirements. It involves recording, analyzing, and reporting financial transactions of a business.
Expenses are the costs incurred by a business to generate revenue. These include costs such as rent, utilities, salaries, advertising, and supplies. Expenses are subtracted from revenue to determine the net income or profit of a business. Managing expenses effectively is essential for businesses to maximize profits and stay competitive in the market.