Telephone expense definition

Telephone expense is the cost associated with all land lines, fax lines, and cell phones during a usage period. If a cost is incurred in advance, then it is initially recorded as a prepaid expense, and later recognized as telephone expense in the period in which the service is actually used. This cost is usually stored in a separate general ledger account that may be aggregated with other utilities when it is reported on an organization's income statement.

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