0
An expense is incurred when a business contract to purchase goods or accept services which will not constitute a resource for the future from which economic benefits can be expected to flow. In other words, an expense is a cost which is not classified as an asset to the business.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
What is nature of expenses?
Expenses are Debit in nature
What are the nature of income and expenses?
gh hkjk
Is legal expense an admin expense?
Legal expenses is not an admin expenses since legal expenses ararise due to legal issues of the organization. legal expenses are not recurring expenses by nature. Example of legal expenses are feees paid to the professional to represent the legal issues before the competent authority.
What is the meaning of revenue expenses in financial accounting?
Revenue expenses are those expenses which are incurred for every fiscal year to earn revenue for specific fiscal year and are recurring nature like salaries etc.
What is the nature of prepaid expense?
Prepaid expenses are of asset in nature because these are payments which have made already but actual expense is not yet incurred so it is shown in current assets under balance sheet until actual expenses incurred.
What is nature of expenses?
Expenses are Debit in nature
What does 'Classification by nature or function' mean?
Classification by nature means that an analysis based on the nature of expenses would, for example, result in classifications for depreciation, purchases, wages and salaries, marketing costs etc. The expenses would be presented in total for each type of expense. Classification by function means that when an analysis is based on the function of the event (or cost of sales method), this will classify expenses according to their function as part of cost of sales, distribution or administrative activities. While this presentation can provide more relevant information to users, the allocation of costs to function can often be arbitrary. Organisations who chose to do this should disclose additional information on the nature of expenses, including depreciation and staff costs. The enterprise should choose the analysis that provides the fairest presentation of the business activities.
Nature and function of credit?
nature and function of credit
What are the nature of income and expenses?
gh hkjk
What is the Nature and purpose or function of constitution?
The nature of a constitution is to establish the fundamental principles, laws, and rights that govern a country. Its purpose is to provide a framework for the organization of government, define the relationships between different branches of government, and protect the rights of citizens. The constitution also serves to limit the powers of the government and provide a mechanism for its amendment.
What are the nature and function of language?
Language is a system of communication using symbols and sounds to convey meaning. Its functions include expressing thoughts and ideas, sharing information, forming relationships, and influencing attitudes and behaviors. Language allows for the transmission of culture, knowledge, and emotions, enabling humans to interact and cooperate effectively.
Does expenSes appear in balance sheet?
It depends on the nature, if expenses are paid and benefits are also rendered then expenses will be shown in income statement, but if benefits not received then it will be shown in balance sheet.
What is the nature of the authority exercised by personnel management function?
what is the nature of the authority exercised by a personnel management function
Is legal expense an admin expense?
Legal expenses is not an admin expenses since legal expenses ararise due to legal issues of the organization. legal expenses are not recurring expenses by nature. Example of legal expenses are feees paid to the professional to represent the legal issues before the competent authority.
What is the meaning of revenue expenses in financial accounting?
Revenue expenses are those expenses which are incurred for every fiscal year to earn revenue for specific fiscal year and are recurring nature like salaries etc.
What is the nature of prepaid expense?
Prepaid expenses are of asset in nature because these are payments which have made already but actual expense is not yet incurred so it is shown in current assets under balance sheet until actual expenses incurred.
What are the nature and function of accounting?
Numbers
