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What is the difference between expenses and purchases with examples?

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تم إضافة السؤال من قبل Bassam Ibrahim Mohammed Mahdi Ibrahim Mohammed Mahdi
تاريخ النشر: 2013/07/01
manaf almas
من قبل manaf almas , Auditor , DAR AL NUZUM PUBLIC ACCOUNTANTS

purachase means purchase of goods or sevices(stock,capital goods etc)to accomplish the goal of enterprice.these all comes under trading account .
expenses are those costs which are helps to complete enterprice process up to the last point..those expenses comes under trading & profit and loss account

Karan Jain
من قبل Karan Jain , supervisor in grey and accounting , narayan prints

purchases with examples - Purchasing refers to a business or organization attempting to acquiring goods or services to accomplish the goals of its enterprise.
expenses In common usage, an expense or expenditure is an outflow of money to another person or group to pay for an item or service, or for a category of costs.
For a tenant, rent is an expense.
For students or parents, tuition is an expense.
Buying food, clothing, furniture or an automobile is often referred to as an expense.
An expense is a cost that is "paid" or "remitted", usually in exchange for something of value.
Something that seems to cost a great deal is "expensive".
Something that seems to cost little is "inexpensive".
"Expenses of the table" are expenses of dining, refreshments, a feast

Bandar AlHadad
من قبل Bandar AlHadad , مختص شؤون مالية , قطاع حكومي

purchases Purchasing refers to a business or organization attempting to acquiring goods or services to accomplish the goals of its enterprise.
Though there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between organizations.
Typically the word “purchasing” is not used interchangeably with the word “procurement”, since procurement typically includes Expediting, Supplier Quality, and Traffic and Logistics (T&L) in addition to Purchasing expenses In common usage, an expense or expenditure is an outflow of money to another person or group to pay for an item or service, or for a category of costs.
For a tenant, rent is an expense.
For students or parents, tuition is an expense.
Buying food, clothing, furniture or an automobile is often referred to as an expense.
An expense is a cost that is "paid" or "remitted", usually in exchange for something of value.
Something that seems to cost a great deal is "expensive".
Something that seems to cost little is "inexpensive".
"Expenses of the table" are expenses of dining, refreshments, a feast

MUSHTAQ AHMED ANGULKAR
من قبل MUSHTAQ AHMED ANGULKAR , INCOME AUDITOR , HOTEL CORAL INTERNATIONAL

Puchases examples: Purchasing mean business establishment acquiring goods or services to fullfill establishments requirements needs.
examples : purchsing machinery, purchsing office furnitures, stationery, food and beverages for hotel industry, guest supplies, Expenes Expenses means payment to another person or business establishment for rendering their services or pament for purchase of goods.
examples: payment of salaries, payment of electricity bills, rent, etc.

JANET ESPINOSA
من قبل JANET ESPINOSA , Division Accountant , T.CHOITHRAM & SONS LLC

Expenses are purchases of items which can be treated as an outrite expense of the company like stationeries,cleaning supplies,fuel/lubricants etc.on the other hand purchase of new vehicle,furnitures or fixtures among others are considered as assets.

ANGSHUMAN DAS
من قبل ANGSHUMAN DAS , General Manager SCM & Ops , King Global Fz LLC

What is the difference between expenses and purchases 

Purchase and expense are close  as both are purchase one is  Goods and other is Service nature .

Both involving flow out of funds . However there is a close  difference in the terms with regard to the results 

 

Purchase of Goods - as purchase of goods would mean acqusition of Assets or some thing tangible example purchase of raw materials or finished goods by industry . Purchased goods can be stored for future use held and defined as STOCKS opening and closing . However if the nature of purchase of items are of less vaue they can be considered as expenses category - unlike Printer catridge purchase but when put to use these are considered as Expense or Opex ( Operational Expenses ) and if held in store prior to use is defined as  Consumables .

 

Where purchase of Service  would be considered as Expense or Opex catergory where it is difficult to store or tangibly view the service - example - repair and maintenance service or Assets . Expense is category purchase where the benefit is enjoyed for a short time , once the expense is over the service is delivered . example - Service of cleaning once there service is delviered it considered as expenses . Wages is also service of manpower , one the labour is utilized it is consisder as expense . Expenses or OPEX procurement are mainly routine or repetative in nature as compared to Purchase of Good where there is ASSET and the benefit of which is enjoyed over a long term - over  1 yr or more depending on the life of the asset.

 

 

 

 

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