Question

Distinguish between:

A) Loss and expense

B) Opening stock & closing stock

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Answer 1

Answer:

A) Loss : 1) Loss is the amount which is left after deduction of total expenses from the total revenue of the particular period

2) Loss = revenue-expences

3) It is depends on expenses. If expenses more than a loss is more than vice versa.

Expense : 1) Expenses mean the amount paid by the business for running the business operations.

2) Expenses = total expense

3) It is not depends on the loss.

B) Opening stock : Opening stock is the value of good available for sale in the beginning of an accounting period.

Closing stock : Closing stock is the value of goods unsold at the end of the accounting period.