Types of fund expenses

A fund incurs expenses just like any other business entity. An expense is a cost of doing business.  

Because the funds follow the accruals basis of accounting, expenses are accounted for and reported in the accounting period in which they take place (are incurred) rather than the period they are actually paid.  

Expenses are accrued for on a daily basis by the Fund Accountant. On payable date of the expense cash settlement occurs. 

When expenses are accrued a liability account is increased. When expenses are paid both the liability and levels of cash are decreased.  

Types of expenses.

Audit exp
Custody exp
Insurance exp
Legal exp
Miscllaneous exp
Pricing exp
Shareholder report exp
State registration exp
Transfee agent exp
Trustee legal fee
Typesetting exp