what the different between the " cost " , " expense" and " assets"?

Question

please give me examples

Answer 1

The cost is usually the purchase price of something and may include an expense. E.g. when you purchase merchandise inventory, the cost is the purchase price of the inventory plus the transportation-in.

Expenses are what you have to incur to keep a business running, e.g. salaries, rent, depreciation, stationery, utilities, etc.

Assets are things like machines in the factory, a factory building, computers, etc which you use in the production of income. What you paid for them is your cost. Subsequent to acquiring them, you have to depreciate them, and depreciation is an expense.

Assets go into the balance sheet. Costs and expenses go into the determination of profit and appear in the income statement. Assets, costs and expenses are all debits.

Answer 2

If you are a photographer, your camera (an asset) costs $500, which is an expense for your business.