What is the difference between expenses and fixe assets.
Expenses refer to the costs incurred by a business in order to generate revenue. These costs are directly related to the day-to-day operations of the business and are typically consumed within a short period of time. Examples of expenses include rent, utilities, salaries, advertising costs, and office supplies.
On the other hand, fixed assets are long-term tangible assets that are held by a business for the purpose of generating income. These assets are not consumed in the short-term and are expected to provide ongoing benefits for a period of more than one year. Examples of fixed assets include buildings, land, vehicles, machinery, and equipment.
The main difference between expenses and fixed assets is their longevity and purpose within a business. Expenses are short-term costs that are necessary for day-to-day operations, while fixed assets are long-term assets that contribute to the overall value and productivity of the business.