are operating expenses a liability
Operating expenses are expenses incurred by a company in the course of doing business. These expenses include anything necessary for the continued productivity and operations of the company, including ancillary expenses incurred as a result of the operations. A company will commonly look at cutting operating expenses if it is not profitable or if it wants to reduce costs. The main difference between liabilities and expenses are the timing under which they are realised. Expenses are incurred, and payments are made during the current period; whereas, liabilities are benefits that are obtained now for which obligations need to be met at a future date. Expenses are recorded in the income statements, since higher the expenses lower the profitability of the firm. Liabilities and expenses are both treated with great importance, as liabilities need to be controlled so that the company assets are able to cover liabilities, and expenses need to be monitored so that it does not reduce the company profitability. In a nutshell: 1 Operating expenses are day-to-day expenses such as sales and administration; the money the business spends in order to turn inventory into throughput.  A capital expenditure, or non operating expense, is the cost of developing or providing non-consumable parts for the product or system. 1 A capital expenditure, or non operating expense, is the cost of developing or providing non-consumable parts for the product or system.  The income statement is used to assess profitability by deducting expenses from revenue. When net income is positive, it is called profit. When negative, it is a loss. In a nutshell: Expenses vs Liabilities. • Liabilities are those for which the benefit is obtained in the present, and the obligation is to be met in the future, whereas expenses are those, which are incurred currently, and payments too are made during the current period. An operating expense is the ongoing cost of running a product, business, or system. Its counterpart, a capital expenditure, or non operating expense, is the cost of developing or providing non-consumable parts for the product or system. Liabilities vs Expenses. Expenses and liabilities both represent an outflow of funds either to be incurred in the current period as an expense, or to be settled on a future date, in the case of a liability. A company must include all of its expenses on its financial statements. Some of these expenses represent costs paid as soon as the expense occurs while other expenses accrue and become a liability before the company actually pays the expense. It is essential for a business to understand the differences and similarities between the varied types of expenses. Many operating expenses, however, also represent accrued expenses. In this case, the operating expense accrues but is not immediately paid for. For example, salaries for employees who conduct research for a company represent an operational expense because they are necessary to the ongoing growth of the company.
Yes