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EXPENSES IN ACCOUNTING

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VISHNU

NIL

43 Points Posted on 10 November 2022

when we do expenses we lose that money as well as the potential income that we could have earned but why do we don't consider that potential income as loss in accounting

Replies (3)

Quick Summary

This discussion delves into the concept of expenses in accounting, questioning why potential lost income isn't typically recognised as a loss. The reasoning provided is that businesses gain services or goods of equal value to the expense incurred. However, it also explores scenarios where the gain received from an expense is less than the potential income that could have been earned, prompting a consideration of whether this constitutes a true loss.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212441 Points Posted on 10 November 2022

Because we get gain by way of service (or goods) in equal amount of expense.

VISHNU

NIL

43 Points Posted on 10 November 2022

What if the gain we receive by incurring such expenses is less than the potential income then in such a case are we actually incurring a loss

Ahmed Malik

55 Points Posted on 10 November 2022

Money as well as the potential income chinesebuffetnearmenow.net that we could have earned but why do we don't consider that potential income as loss in accounting.