Question

Distinguish between:

A) Loss and expense

B) Opening stock & closing stock


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Answer 1

Answer:

A. Comparing Expenses and Losses

The main difference between expenses and losses is that expenses are incurred in order to generate revenues, while losses are related to essentially any other activity. Another difference is that expenses are incurred much more frequently than losses, and in much more transactional volume.

B.Opening stock is the value of goods available for sale in the beginning of an accounting period. ... Closing stock is the amount of inventory that a business still has on hand at the end of a reporting period. This includes raw materials , work in progress , and finished goods inventory .

Explanation:

A .The main difference between expenses and losses is that expenses are incurred in order to generate revenues, while losses are related to essentially any other activity. Another difference is that expenses are incurred much more frequently than losses, and in much more transactional volume.

B.The unsold goods in the beginning of the accounting period is called opening stock, whereas the unsold goods at the end of the accounting period is called closing stock.