What Is an Asset and Expense?
1 What is an Asset?
An asset is an item that a company owns. Assets are divided into three basic groups: capital assets, current assets and intangible assets. Capital assets are typically owned for the long term and include buildings, land, vehicles and manufacturing equipment. Current assets are items that can quickly be converted to cash, such as actual cash, accounts receivable, inventory and investments such as bonds and stocks. Intangible assets are items that cannot be physically touched, including goodwill, patents and trademarks.
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2 What is an Expense?
Expenses are costs related to running the business. Expenses are deducted from revenue to determine the profitability of a company. Typically, the largest expense for a company is cost of goods sold -- raw materials, direct labor and other costs related to manufacturing or purchasing an item for resale. Depreciation of property, plant and equipment should also be captured in the cost of goods sold. Administrative expenses cover all expenses related to running the company. These expenses include selling and general administrative expenses, including indirect labor, taxes and other miscellaneous operating costs.
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Answers.com > Wiki Answers > Categories > Business & Finance > What is the difference between asset and expenses?
What is the difference between asset and expenses?
In: Business & Finance, Business Accounting and Bookkeeping, Financial Statements, The Difference Between [Edit categories]
Answer:
An asset is something of value that is controlled by the businesses. You may have current
An asset is an item that a company owns. Assets are divided into three basic groups: capital assets, current assets and intangible assets. Capital assets are typically owned for the long term and include buildings, land, vehicles and manufacturing equipment. Current assets are items that can quickly be converted to cash, such as actual cash, accounts receivable, inventory and investments such as bonds and stocks. Intangible assets are items that cannot be physically touched, including goodwill, patents and trademarks.
Read more: What Is the Difference Between an Asset & an Expense? | eHow.com http://www.ehow.com/info_12085244_difference-between-asset-expense.html#ixzz2Lt18CKe5
2 What is an Expense?
Expenses are costs related to running the business. Expenses are deducted from revenue to determine the profitability of a company. Typically, the largest expense for a company is cost of goods sold -- raw materials, direct labor and other costs related to manufacturing or purchasing an item for resale. Depreciation of property, plant and equipment should also be captured in the cost of goods sold. Administrative expenses cover all expenses related to running the company. These expenses include selling and general administrative expenses, including indirect labor, taxes and other miscellaneous operating costs.
Read more: What Is the Difference Between an Asset & an Expense? | eHow.com http://www.ehow.com/info_12085244_difference-between-asset-expense.html#ixzz2Lt1DWL35
Justin Johnson- www.ehow.com/info_12085244_difference-between-asset-expense.html -
Answers.com > Wiki Answers > Categories > Business & Finance > What is the difference between asset and expenses?
What is the difference between asset and expenses?
In: Business & Finance, Business Accounting and Bookkeeping, Financial Statements, The Difference Between [Edit categories]
Answer:
An asset is something of value that is controlled by the businesses. You may have current