1 Keyboard (there is no writing on this template). 2  My Documents: Write a short summary about the book that you read. 3  Your summary should make other students interested in reading your book, but do not give away important information about how the story ends. Computer Screen: Title, Author, Genre, and a drawing of the climax of the story. 2  Keyboard (there is no writing on this template). 3  My Documents: Write a short summary about the book that you read.
For example, inventory is an asset. Expenses are the cost of bringing in revenues. They were needed to bring in the revenues and profits that you reported this year. Expenses appear on the income statement. For example, just as inventory is an asset, âcost of goods soldâ is an expense. This is the cost of inventory that was sold during the year. The difference is really one of timing. An asset is expected to bring in a benefit sometime in the future. When the benefit comes in, then the asset becomes an expense. As it is sold, inventory is moved out of the inventory account on the balance sheet, and into the cost of goods sold account on the balance sheet.
When current assets such as inventory, office supplies and store supplies are used up or consumed, they are no longer considered assets, but rather they are considered expenses. Fixed assets undergo a similar process called depreciation. Depreciation attempts to estimate the reduction in the value of fixed assets.