Dan Crater opened a software consulting firm that immediately paid $28,000 for a computer system. Was Crater's computer system an expense of the business? If not, explain.
Dan Crater opened a software consulting firm that immediately paid $28,000 for a computer system. Was Crater's computer system an expense of the business? If not, explain.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dan Crater opened a software consulting firm that immediately paid $28,000 for a computer system. Was Crater's computer system an expense of the business? If not, explain.
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Step 1 General Introduction
Business expense is an amount incurred in the ordinary course of business which is divided into two broad categories that is capital expenses and operational expenses. They are part of income statement and are deducted from revenues to derive profits earned by the business.
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