Activity: Categorising Expenses

Objective: Students will practice categorising different types of expenses.

Materials: - Chart paper - Markers or pens

Instructions: 1. Divide your class into groups of four. 2. Provide each group with a piece of chart paper and markers or pens. 3. Instruct the groups to create a chart on their chart paper, with columns labeled “Type of Expense”, “Nature of Expense”, and “Explanation”. 4. Provide each group with a list of ten different types of expenses. 5. Tell student groups to categorise each expense in the appropriate columns according to the types and definitions given (e.g. type of expense = depreciation; nature of expense = non-cash; explanation = allocation of the cost of an asset over its useful life.)
6. Give each group 20-25 minutes to complete the task. 7. Encourage groups to share their categorisations with the other groups. 8. Invite each group to share their categorisations with the class. 9. Conclude by discussing the importance of understanding expenses and proper categorisation.