0
Jackson6612 Posted 11 years ago
Grammar

Types of expenses

Hi

Suppose you are having an event in your backyard and you think that you should get a pedestal fan because it could be hot outside for guests. It's an expense but that fan can also be used in future. So, what kind of expense is it? On the other hand, for instance, if you buy pizza for your guests then naturally that pizza is also an expense but it won't be used in future. Please help me. Thanks.
  

Top answer

Here's my quick thought about this. The pizza is an expense. The fan is an asset, not an expense.

— Clive

  • Here's my quick thought about this.
  • The pizza is an expense.
  • The fan is an asset, not an expense.
  • As the fan wears out over time, it is treated as a depreciation expense.
  • Marry an accountant to get more details.
Free · every Monday

Get the Weekly English Kit 📬

New words, one handy idiom, and a 2-minute quiz — delivered to your inbox to keep your streak alive.

2 Answers
0
Here's my quick thought about this.
The pizza is an expense. The fan is an asset, not an expense. As the fan wears out over time, it is treated as a depreciation expense.
Marry an accountant to get more details.
0
0
Thank you, Clive.

The following webpage really helped me to get more information about this:
http://www.investopedia.com/articles/fundamental/04/090804.asp

And thanks for the advice. I will start looking for one soon!
0

Related Questions