As someone who came from a low socioeconomic class, what harsh truth did you learn your first year at an elite U.S. university?

List of expenses in accounting PDF

Upper-middle class and upper class kids just donu2019t think about money.

They just donu2019t have to.

,Not in a malicious way, not in a wasting-unnecessary-money way, just in the fact that they have never been required by circumstance to do so.

,They didnu2019t work in high school.

Why would they? They were busy with school u2014 maybe they would have liked more money, but their phone and car and clothes were paid for, so what was really the point? The time investment just didnu2019t make sense.

Better to study hard and go to a good college.

,They donu2019t pay their own bills.

What good would that do? The caru2019s paid off, the family has a family plan for their phones and itu2019s just easier for Dad to hand them a gas card and not have to worry about them running out somewhere.

,They donu2019t have money as a factor when theyu2019re picking out a college.

They worked hard in high school, so they should go anywhere that will take them! Their parents have been saving for their whole lives, so they can afford it.

Education is important, after all.

Itu2019s an investment.

Thatu2019s why they donu2019t need to fill out the FAFSA or have financial aid.

What even really is the FAFSA, anyway? Waste of time, they wonu2019t qualify.

,Of course you need a new fifteen-hundred-dollar MacBook for college.

You canu2019t have a laptop that fails on you! It just makes sense.

,Of course you need a new car to get you around when your parents are far away, and an eight-hundred-dollar parking pass.

Itu2019s just what you do.

,Of course you need an unlimited meal plan.

Better just to have it taken care of.

Of course you need lots of spending money u2014 youu2019re away from home.

Iu2019ll just put some more in your checking account.

,Of course you need new, good clothes.

Buy the Birkenstocks, the Hunter rain boots, the Vineyard Vines fleece, the nine-hundred-dollar Canada Goose coat u2014 the brand-name stuff will last longer.

,Money isnu2019t a consideration.

It isnu2019t a factor.

Itu2019s just a card swipe, a quick signature at the bottom of a restraint receipt, maybe a half-second jolt in your stomach if you really spend too much, the cash you plunk down for your full-price textbooks at the store.

Itu2019s just a tool.

,These kids have never worked a job because they sure as hell werenu2019t getting an allowance and there were things that had to be paid for.

They never paid for their own phone, gas, clothes, expenses, because they saw that pained smile in their momu2019s eye and promised themselves they would find a way to stop asking.

,They never made lists of colleges based on their financial aid calculators, painstakingly copied off last yearu2019s tax returns, figuring out what was a maybe, possibly, and what was a no, never.

They never spent hours poring over their FAFSA, praying the government would give them their max totals, or scholarship after scholarship application.

,They didnu2019t see their dadu2019s face light up when he snuck them aside and told them that he had been saving up money for all of the college shopping that they had to do.

,They didnu2019t see his face fall when it still went over budget.

,They didnu2019t spend hours on the phone with the administration, negotiating refunded expenses, a covered laptop, lower meal plans, and what was and was not covered.

,They didnu2019t buy rain boots from the clearance section and a coat on last-chance sale.

,A car on campus? That parking fee? The math just isnu2019t there.

,Used textbooks, rented textbooks, thrifted online, bought with employee discounts, found in pdf form on some sketchy website, uploaded by another kid just sharing the wealth.

,Canu2019t go home this weekend, canu2019t go home this break.

Too expensive.

,Want to check in at home? Well, do you remember Miley from AP Biology? Turns out she had to drop out because she couldnu2019t make tuition.

Remember that nice boy John who used to help you with math? Heu2019ll graduate, but heu2019ll be in debt for the next twenty years.

,There are a thousand, thousand other things that when you didnu2019t come from money, or even didnu2019t come from that much money, that you just have to think about.

That just have a place in your head while youu2019re trying to fit into a crazy life a world away from what you know.

Things that you didnu2019t even know that not everyone had to notice and consider and remember, because money is only a tool if you have it and it takes on a thousand other lives if you donu2019t.

How many types of expenses in accounting

OutstandingReal,Nominal,Accured

How to record expenses in accounting

Electricity, water, heat/gas are examples of utilities expense.

If you receive the monthly invoice by end of the month you can record the actual expense in the month.

If you do not receive the invoice then you would accrue the expense.

Accrual could be based on prior month expenses : DR Utilities Expense Account and CR Accrued Liability.

Reverse the entry in the following month when you record the invoice.

Types of expenses personal

If youu2019re purchasing a lot, youu2019ll have to budget for grass cutting, property taxes and possibly fencing and liability insurance.

,On a multi-family property, there are additional expenses related to maintenance.

Youu2019ll need to either handle the repairs yourself, hire a handyman for small repairs or a licensed contractor for more serious issues.

To be safe, I advise my clients to allocate 10% of the rental income in maintenance costs.

Of course, this fluctuates depending on the age of the property and how well it was previously maintained.

A good initial inspection should give you an idea of whatu2019s ahead as far as needed repairs and the overall condition of the property.

,I hope this helps.

Feel free to ask more specific questions if youu2019d like.

Expenses definition in accounting With examples

I think if you think in terms of increasing or decreasing, youll be better off than thinking in terms of left or right.

,There are only five broad categories you need to grasp.

,,Assets,Liabilities,Shareholders (aka Owners) Equity,Revenue,Expenses,nA debit (DR) isnt always increasing.

A credit (CR) isnt always decreasing.

Dont think of it in these terms, but rather in the context of the five categories above.

,Debits will always increase for Assets and Expenses.

Credits have the opposite effect.

,Credits will always increase for Liabilities, Shareholders Equity and Revenue.

Debits will have the opposite effect.

,Lets go over a few simple examples.

,Example 1: You incur a rent expense (but dont yet pay it).

,The journal entry would be to:,DR Rent ExpensenCR Accounts Payable,Your rent (expense) just increased and you incurred a simultaneous accounts payable (liability).

,Example 2: Now, you pay that liability with cash.

,The journal entry would be to:,DR Accounts PayablenCR Cash,Your cash (asset) decreased and you accounts payable (liability) also decreased.

,Example 3: You make a sale (on account).

,The journal entry would be to:,DR Accounts ReceivablenCR Sales,Your accounts receivable (asset) increased and your sales (revenue) increased.

,Example 4:Now the customer paid you for that receivable amount,The journal entry would be to:,DR CashnCR Accounts Receivable,Your cash (asset) increased, and your accounts receivable (asset) decreased.

In this particular case, you debited and credit an asset so there no change to assets.

The receivable was simply replaced with the cash payment.

,So in summary, if you think in terms of increase and decrease, combined with the aforementioned major categories, I think youll develop a stronger grasp of debits and credits.

,Hope that helps.