Expenses are the cost of assets consumed or services used in the process of earning revenue. They are decreases in owner’s equity that result from operating the business. For example, Campus Pizza recognizes the following expenses; cost of ingredients (meat, flour, cheese, tomato paste, mushrooms, etc.); cost of beverages; wages expense; utility expense (electric, gas, and water expense); telephone expense; delivery expense (gasoline, repairs, licenses, etc. ); supplies expense (napkins, detergents, aprons, etc.); rent expense; interest expense; and property tax expense.
Definition