Expense is something that has caused an outflow of cash to the firm. Liability means an activity or transaction that will cause future outflow of funds. Asset enables future inflow of cash to the firm.
Expenses is recognised in books before it paid. It is liabilities. An asset is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide a future benefit.A liability is defined as a company's legal financial debts or obligations that arise during the course of business operations.
