Explain the difference between asset and expenses

1.	Explain the difference between asset and expenses
Answer» \tAssets and expenses are very different elements of the financial statements of an entity. Assets are any resource that is owned or controlled by an entity and gives value to the entity either by aiding production of goods/services or by having a fixed monetary realization . Also most assets appear in the Balance sheets for a comparatively longer period.They also suffer diminution in value (except certain assets) Eg. Building, Debtors.\tExpenses on the other hand are usually outflows of cash of an enterprise in order to obtain an asset or settle a liability. Expenses mostly appear in the Financial Statements in the year they\'re incurred (except capital expenditure and deferred revenue expenditure).It can also be defined as the cost of doing business.

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