0
An asset is something of value that is controlled by the businesses. You may have current assets (items that will be available for up to 12 months) such as cash or office supplies and you may have non-current assets (items that will be available for more than 12months) such as a car. (PS on some non-current assets you will also have to take into consideration the depreciation of the asset)
An expense is outflows that are incurred when used to generate revenue, such as wages, rent, advertising etc. these are all items that the business must pay for in order for them to generate revenue. for example: if running a cafe, if the business operators don't pay wages to their staff, then they will not have anyone to serve customers, which in turn leads them to lose revenue.
Hope this is what you were looking for :)
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
What is difference between fixed asset and inventory?
What is the difference between fixed asset and inventory
The difference between the cost of an asset and the accumulated depreciation for that asset is called?
Book Value is the difference between the cost of an asset and the accumulated depreciation of that asset.
Differentiate between net asset aur current asset?
Working capitol is the difference between net asset and current asset.
When do you debit the deferred tax asset?
When there is a difference between the carrying amounts and tax bases of: 1. Assets 2. Liabilities 3. Expenses which leads to a reduction in your future tax liability.
What is the difference between an expense and an asset?
An asset will have benefits extending into the next accounting period
What is difference between fixed asset and non current asset in detail?
assests means
Difference between outstanding expenses and prepaid expenses?
Outstanding expenses are the expenses which have fallen due at the end of the accounting period but which has not been paid. Its a liability for the company and will be shown under the Current liabilities and provisions. Prepaid expenses are the expenses which paid during the year before its due. The money is paid out but its not due at the end of the period. Its an asset and will be shown under current Assets in the Balance sheet.
What is the difference between preliminary and preoperative expenses?
THERE IS NO DIFFERENCE BETWEEN PRELIMINARY AND PREOPERATIVE EXPENSES. THESE EXPENSES ARE INCURED IN BREFORE OPENING THE DOORS OF A BUSINESS OR RELEASING A NEW PRODUCT INTO THE MARKET ETC.. FOR EXAMPLE ADVERTISMENT, PRELAUNCHING EXPENSES, ETC.
Is utility expense an asset?
Expenses are always shown in income statement if expenses are already utilized but if expenses are paid already and are utilizable in future time period then they are asset.
Are prepaid expenses an asset liability or equity?
NO! Prepaid expenses are assets!!
What is the difference between current asset and liquid asset?
liquid asset can be converted into cash within a very short span of time...
What is difference between advance expenses and prepaid expenses?
i dont have any knowlege.....Nikita Gohil
