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- Liability vs expenseThe key differences between liability and expense are1234:
- Liability: Financial obligation or debt that a company owes to others. Reported on the balance sheet.
- Expense: Cost of goods or services consumed to earn revenue. Reported on the income statement.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Liability vs expenseAn expense is a cost required to be incurred during the course of revenue generating activities of a business. A liability is financial obligation of an entity that is created due to a business transaction conducted in the past.www.termscompared.com/expense-vs-liability/Liability vs expenseA liability is a financial obligation or debt that a company owes to others. In contrast, an expense is the cost of goods or services consumed to earn revenue. Liabilities are reported on the balance sheet, while expenses are reported on the income statement.askanydifference.com/difference-between-liability-a…Liability vs expenseThe primary difference between expense and liability is that liability refers to the obligations every business must fulfil within a given period. Expenses refer to the costs that are incurred during a financial year. They are calculated daily and paid on sight. Current and noncurrent liabilities are also based on a period.www.diffzy.com/article/difference-between-liability-…Liability vs expenseLiabilities are financial obligations a company owes to external parties, often due to past transactions or events, and they need to be settled in the future. This can include loans, accounts payable, or mortgages. Expenses, on the other hand, are outflows or the using up of assets as part of a company's operations to generate revenue.www.askdifference.com/liability-vs-expense/ - People also ask
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