Income, Expense, or Neither?

 In Tuesday’s Tips

Money goes in, money goes out, it all ends up somewhere on the P&L, right? Nope. Take our quiz to see what counts and income and expense, and what doesn’t.

Is This Considered Income?
1. Interest earned on savings account
2. Referral commission
3. Collected sales tax
4. Refunded a customer
5. Applied a discount
6. Returned office supplies for refund
7. Investment money/contributed capital
8. Cash back rewards on credit card

Is This a Business Expense?
1. Office utilities
2. Paid sales tax to state
3. Interest on credit card
4. Cell phone
5. Purchase of machinery
6. You withdraw money
7. Loan payments
8. Self-employment taxes

Click for Answers