what is difference between cost and expenditure and expence
Answers were Sorted based on User's Feedback
Answer / nana
An expense is reported on the income statement. An
expense is a cost that has expired, was used up, or was
necessary in order to earn the revenues during the time
period indicated in the heading of the income statement. For
example, the cost of the goods that were sold during the
period are considered to be expenses along with other
expenses such as advertising, salaries, interest,
commissions, rent, and so on.
Expenditure is a payment or disbursement. The
expenditure may be for the purchase of an asset, a reduction
of a liability, a distribution to the owners, or it could be
an expense. For instance, expenditure to eliminate a
liability is not an expense, while expenditures for
advertising, salaries, etc. will likely be recorded
immediately as expenses.
A cost is a sacrifice of resources. So when we buy
something, we cease to have the ability to use these
resources (typically cash or credit line) to buy something
else. The price of each item measures the sacrifice we must
do to acquire it.
Whether you pay cash or use any other asset, and to pay
now or later (if we use a credit card), the cost of an item
purchased is represented by what we give up as a result.
Cost will be a cash outflow that may bring you benefit but
expenditure is a cash outflow that will only cost you money
but not giving you any feedback
Is This Answer Correct ? | 14 Yes | 1 No |
Answer / hussein abdirizak
Cost: is what the company incurred when selling goods or service.
expense: is what we calculated as a cost during selling goods or service will be expense when we percent in income statement.
Is This Answer Correct ? | 2 Yes | 0 No |
1. ABC Pvt. Ltd acquired the right to publish a book entitled “Accountancy easy” From Writer at a royalty of Rs. 20 per copy of the book sold. The minimum rent was fixed at Rs. 30,000 per year. It was agreed, that the short workings of any year can be recouped with in 2 years immediately following the year in which short workings occurred. The no. of copies sold during the five years was as following: 1. 1st year -1000 2. 2nd year -1400 3. 3rd year -1800 4. 4th year -3000 5. 5th year -1200 Show royalties account in the books of the publisher.
Calculation of closing Stock give example?
25 Answers ABC, Accounting, Crossdomain, EDS, FAIM, Set Trade,
what is IPO
amount paid to rajiv as tour advice-2000
entry tax calculate on purchase +freight inward or not
main features of different sources of short-term finance ?
WRITE ABOUT ANY 1 "WOMENS ARE BEST MANAGEMENT PERSON" "IF UR FINANCE MINISTER OF INDIA" "V R RESPONSIBLE FOR OUR ENVIRONMENT"
1. If Ram Received Cash Rs. 900/- & Deducted Rs.100/- as EPF. 2. Cheque diposited into bank Rs. 200/- against EPF of ram. How many ledger should create under which & what will be the entry ?
what is depriciation, and its method
FIXED Asset - What is the most used method/right method in Depreciation in India and other countries..? (ie., Straight line method,Written down value method. or etc.,). The calculation for depreciation how it stand commonly in all organization..? Is there any difference between companies and assets..? Your answer will be highly appreciated. Thanks in advance.
how many types of deprecation (exactly)
Have you ever made mis reports and what are they?