Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.
Expense is recorded as and when it is incurred irrespective of payment (means expense has to be reported in the accounting books whether cash/bank payment is made or no), while payment is a mere outflow of cash/bank against an expense incurred or any prepaids.
Expenses are the debit side of Profit & Loss Account, Whereas payments are related to Cash & Bank Book.
Expenses: Utility consumed
Payment: Only an outflow of economic resources likely cash
expenses affect the income statement by decreasing net income/loss, while payments affect the statement of financial position by reducing A/R or A/P.
Expense means outflow of economic resource that might be in future or on the spot.
Payment means direct outflow of economic resource in shape of cash.
Alltypes of payments not an expenseexpense because we have to pay other then expense like liabilities, capital expenditure ,fixed assets, dividend drawing etc.
Means expenses exchange one currency for another rate which is about to swap currencies National proportion to each other in the exchange market and then this price is merely a just price for his work in units of work again, and the payments they estimate the money for all commercial and financial transactions between the state and the outside world through a certain time period often years.
Under the accrual methodof accounting, expenses are costs that have been used up or have been incurred in the process of earning revenues and/or operating a business. For example, a retailer will report its cost of the goods sold as an expense of the period in which the related sales occurred (even if the retailer has not yet paid for the goods, or had paid for the goods in an earlier period). Some expenses are allocations of a cost that was paid in an earlier period (e.g. depreciation of an asset purchased in a previous year, the allocation of a6-month insurance premium). Expenses also include costs incurred in the current period that will be paid in a later period (e.g. current advertising that will be paid for in the next accounting period). Interest on a loan is a daily expense even though all of the interest will be paid when the loan comes due in the next accounting period.A payment is a disbursement of money (usually in the form of a check or currency). Some payments are current period expenses (e.g. current month's rent payment) but many payments are not expenses of the current period. Here are a few examples of payments that are not expenses:
Some current period payments will result in expenses in future periods: