Expense accounting
Match direct expenses with sales revenue in the same period e.g.,
Use of inventory account to hold the cost of products that are manufactured or purchased until the goods are sold
Match other indirect expenses with the period benefited e.g.,
The costs of long-lived operating assets (e.g., building, plant, furniture, computer, truck) are recorded to expense over the span of their useful lives through depreciation (with the exception of land)
Expense accounting
Match direct expenses with sales revenue in the same period e.g.,
Use of inventory account to hold the cost of products that are manufactured or purchased until the goods are sold
Match other indirect expenses with the period benefited e.g.,
The costs of long-lived operating assets (e.g., building, plant, furniture, computer, truck) are recorded to expense over the span of their useful lives through depreciation (with the exception of land)
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