Expense Accruals and the Effect on an Income Statement. From the purchase of office supplies to the salaries and wages a company pays to its employees, all business expenses must be recorded on a ...

Like any other expense, a company must account for its supply costs on the income statement. A basic multiple-step income statement is set up to separate operating and non-operating expenses.

The proposed concepts statement also contains a recognition hierarchy that would be followed when evaluating an item for recognition in the financial statements. Although concepts statements are ...

Depreciation expense is recorded on the income statement as an expense, representing how much of an asset's value has been used up for that year. It is neither an asset nor a liability.

But t he expense rules represent what may be one of the biggest changes for the income statement when it comes to disaggregation, FASB member Fred Cannon said in an interview.