Interested to Buy Any Domain ? << Click Here >> for more details...
what is difference between cost and expenditure and expence
- 2 Answers
- 14079 Views
- I also Faced
- E-Mail Answers
Answer Posted / 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 |
Post New Answer View All Answers
what is the impact of bank garantee of rs 100000 on cash flow statement which has been expired...& impact on bank reconcilation statement
Is financial accounting necessary?
Dear Sir I had already export to dubai. now I am to know that can I enter this sale entry in RG1. pls guide me.
if my salary is 12000 per month how much i will get after deducting PF an ESI
iam working with tally ERP.9,but iam dont prepared reconciliation,trial balance,profit&loss,balance sheet etc.bcoz all these activicties done in head office.plz give me citeria where iam prepared.
what is ment by suspence account and dummy account
total assets are equal to total liabilities in final accounts ?why?
Scope and nature of Accounting
Explain financial accounting. What are its characteristic features?
bank releted question interviw plz tel me
journal entry for goodwill and capital bought by a new partner?
Tell me the stages of double entry system?
Explain me bills receivable?
Do you know what is liabilities and what all does include in current liabilities?
dear sir,how to maintain petty cash book. its voucher and posting on cash book and ledger A/c?
