An expense is the term given to those business costs which are day to day running costs such as rent, heat and light, insurance, wages, etc - sometimes known as overheads. Expenses are deducted from gross profit in the the profit and loss account
Drawings is the term given to money withdrawn from the business for the owners personal use - NOT the same as wages however, because the owner is NOT an employee of the business and they can take as much or as little in way of drawings as they wish. Drawings are deducted from the owners capital in the balance sheet
An asset will have benefits extending into the next accounting period
Prepaid expense is a payment which relevant to services which expected to delivered in the next accounting period, while advance expense is an expense paid in advance for services expected to delivered in the current accounting period.
an expense
Accrual accounting records an expense/revenue in the period the transaction occurs. Cash accounting recognizes and expense/revenue when cash is exchanged.
Sales is a revenue not an expense or asset while difference between sales and expense is profit which is liability for business.
An asset will have benefits extending into the next accounting period
Prepaid expense is a payment which relevant to services which expected to delivered in the next accounting period, while advance expense is an expense paid in advance for services expected to delivered in the current accounting period.
Expenses already incurred but not necessarily for the current accounting period is prepaid expense. In the case of advance, the expenses even though identified, have not been incurred but only cash has been taken out for the purpose of incurring such expense.
an expense
Accrual accounting records an expense/revenue in the period the transaction occurs. Cash accounting recognizes and expense/revenue when cash is exchanged.
Net Income
Sales is a revenue not an expense or asset while difference between sales and expense is profit which is liability for business.
Do not use short forms or initials for anything what is plain to one person is meaningless to another. Get out of the accounting and bookkeeping business if you cannot tell the difference between and expense and a liability.
This is in accordance with Generally Accepted Accounting Principles, SFAS No. 109, "Accounting for Income Taxes". The theory is that even if you don't owe tax today on a given temporary difference, you will one day owe (or get the tax benefit) of said temporary difference. Remember: current tax expense= your tax bill this year deferred tax expense/ benefit=your future tax expense or benefit on the book/tax temporary items
In accounting the "installation" if you are referring to the cost of having something installed is an expense and is recorded as such, that is an operating expense and is recorded as such. Since it is an expense it is not an actual asset, so can not be depreciated.
In accounting an expense activity requiring someone to spend money. For instance, paying employees is considered an expense to businesses.
Temporary accounts are like your revenue, expense, owner's drawing accounts and the income summary. Permanent accounts are like your assets, liability, and most of owner's equity accounts.