Question

Charlene Rose tells you that accountants where she works are real hair splitters. For example, they make a big issue over the difference between a cost and an expense. She says the two terms mean the same thing to her.
Required
a. Explain to Charlene the difference between a cost and expense from an accountant’s perspective.
b. Explain whether each of the following events produces an assets or an expense:
(1) Purchased a building for cash.
(2) Paid cash to purchase supplies.
(3) Used supplies on hand to produce revenue.
(4) Paid cash in advance for insurance.
(5) Recognized accrued salaries.


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  • CreatedApril 20, 2015
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