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purachase means purchase of goods or sevices(stock,capital goods etc)to accomplish the goal of enterprise.these all comes under trading account .
expenses are those costs which are helps to complete enterprice process up to the last point..those expenses comes under trading & profit and loss account
Wiki User
∙ 9y ago
Wiki User
∙ 9y agoexpenses are those costs which are helps to complete enterprice process up to the last point..those expenses comes under trading & profit and loss account
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Is purchases differ from expences?
purchases is related to products expenses are recuring in nature , direct exp are related to products and indirect exp are not related to products
Are purchases expenses or costs?
Purchases are costs until those purchases are converted into sellable goods and actually sold for revenue.
Can purchases be defined as direct expenses?
yes it is direct
The amount of the purchases for a period is presented in the expenses section of the income statement?
The amount of the purchases for a period is presented in
How do flexible expenses differ from fixed expenses?
Flexible expenses vary over time.
How do you determine the amount of net purchases?
by listing all the expenses
How do flexible expenses differ from fixed expense?
Flexible expenses vary over time.
Do purchases go on an income statement?
No, purchases do not go on an income statement. The income statement only includes revenues and expenses directly related to the operation of the business. Purchases are recorded on the balance sheet as an increase in inventory or as an expense when the inventory is sold.
How does depreciating expense differ from other expenses?
Depreciation is differ in this sense that depreciation is not a direct expense like other expenses rather it is the allocation of fixed asset cost over useful life of asset to income statement.
What is the difference between income and expenses?
Income items and expenses differ on many fronts, but they also share conceptual proximity in some situations
Are expenses assets?
Yes and no. When a company purchases a fixed asset it is expensed through depreciation over the useful life of the asset.
Are fixed assets expenses?
Yes and no. When a company purchases a fixed asset it is expensed through depreciation over the useful life of the asset.
