Similarities & Differences Between Assets And Expenses
Assets are the useful resources or economic benefits owned and controlled by the business that will flow to the business while Expenses are the costs of earning Revenues for the business. Types / Kinds of Assets include both Current Assets and Fixed Assets while expenses include both direct and indirect expenses. You Ca n Also, " Similarities & Differences Between Liabilities And Expenses " Examples of Assets include Cash, Accounts Receivable, Inventory / Stock, Land & buildings, etc. while expenses examples include Cost of Sales, Purchases, Salaries, Wages, Advertising, Marketing, Administrative Expenses, etc. Assets are recorded on the Assets side of the Balance Sheet as these are Permanent Accounts while expenses are recorded in Income Statement as these are Temporary Accounts . Similarities Betwee n Assets And Expenses B oth are helpful for the smooth running of the business. For instance if expe ...