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What's the difference between liabilities and expenses? Knoxville
- Location: Usa, Knoxville, Tennessee, United States
Liabilities are future obligations a business owes, while expenses are costs incurred to generate revenue. Liabilities are reported on the balance sheet, representing what a company owes to others, such as loans or accounts payable. Expenses are reported on the income statement, showing the cost of operations during a specific period, like salaries or rent. A key difference is that an unbilled expense that is not yet paid becomes a liability.
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