Expenses are incurred to generate revenue whereas losses do not generate revenue Do u agree discuss
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Answer:
Expenses: An Overview
Most companies report such items as revenues, gains, expenses, and losses on their income statements. Though some of the terms will sound similar, there are different practical uses for gains and losses, as well as for revenues and expenses.
Below, we'll take a look at each combination of terms and how they can differ. Ultimately, businesses look to maximize gains and revenues while minimizing expenses and losses. They all affect overall profitability.
KEY TAKEAWAYS
Gains and losses are the opposing financial results that will be produced through a company's non-primary operations and production processes.
Revenue describes income earned through the provision of a business's primary goods or services.
An expense is a cost incurred in the process of producing or offering a primary business operation.
Gains and Losses
Gains and losses are the opposing financial results that will be produced through a company's non-primary operations and production processes. Any time a company produces a profit or realizes increased value through secondary sources, such as via lawsuits, investments in financial instruments, or through the disposal of assets, it is considered to be a (capital) gain.
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