Monday, February 27, 2012

What is an accounting expired cost?

What is an accounting expired cost?

Businesses acquire assets in the course of ordinary affairs to consume or use up in order to generate revenue which leads to profits.

Therefore, assets represent un-expired cost before their ultimate consumption by a business. As soon as part or an entire asset is depleted, completely used, or expires it is no longer an asset and converts into expired cost or expenditure and reported as an expense on the accounting income statement. Thus, it is generally said in accounting terms that this is an expired cost.

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