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What is the difference between expenses and payments?

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Question ajoutée par Rana Alnajjar , Web developer , Lebcards
Date de publication: 2016/12/15

expenses is paid to collect revenue but payment is paid to collect services

 

abdullah meer
par abdullah meer , Senior Accountant , Ahbar Industries

well they are both related to each other and will usually come under one transaction which is the payment of expenses. the following entry will be passed when an expense is paid.

Dr  Expenses

Cr  cash

Anil Lalwani
par Anil Lalwani , Chief Accountant , Al Ahli Hospital

Expenses means which affect the profit or loss of business on the other hand payment means settlement of an account either fully or partially.

manseer muhammed ali
par manseer muhammed ali , Accountant General , Royal Lighting L.L.C & Royal Furnishing LLC

Under the accrual method of accounting, expenses are costs that have been used up or have been incurred in the process of earning revenues and/or operating a business. ... 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.

Wilfredo Quito
par Wilfredo Quito , Accounting Manager , DDC LAND INC.

 

Expenses are expenditures. A cost that have been used up. Payments These are the amounts that have paid out. They may relates to purchase of tradable goods, purchase of assets, clearing of previous dues, loans to staff etc.

 

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