Expenses and losses are different because expenses are related to the main operating activities of the entity, but losses relate to peripheral or incidental activities.

Question

Quizplus · Accepted Answer

Expenses are the costs incurred during the normal course of business operations, while losses are the result of activities that are outside the regular operations, such as the sale of an asset for less than its carrying amount.

Expenses and Losses Are Different Because Expenses Are Related to the Main