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While billable expenses are costs a client agrees to be billed for, non-billable expenses are costs related to your work that the client is unwilling to reimburse. Interestingly, non-billable costs are direct costs that are deemed non-billable.
Expenses as a Liability. Any expenses that has not yet been paid is considered a liability. This includes accounts payable, notes payable, long-term debt and any other money owed to people outside of the company. These are listed under their own section under the liabilities section on the balance sheet. Money owed to shareholders is not considered an expense, but equity is and it is listed under shareholder's equity. Financial Accounting: An Introduction to Concepts, Methods and Uses; Clyde P. Stickney et al.; 2009.