What is the difference between Cost and Expense?
However, the corporate context offers a slight semantic distinction between costs and expenses. Costs typically consist of money a company doles out to produce items or acquire merchandise for resale. Expenses represent the hodgepodge of charges a bu...
Depreciation vs Expensing Purchases on Income Taxes
Accelerated depreciation has the effect of reducing the amount of taxable income in the immediate future through increased expense recognition, and of increasing the amount of taxable income in later years. Given the time value of money, this means t...
Accumulated depreciation
Over the asset’s useful life, depreciation systematically moves the asset’s costs from the balance sheet to expenses on an income statement. The simplified version of these adjustments is that a special deferred tax asset will be put on the balance s...