Expense VS Liability?
What is the difference between an expense and liability? If I am tracking no charge warranty work...would I set that up in my chart of accounts as an expense or a liability?
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dgUkRosNer4izzacwZ5xHE
03/09/11 9:23am PST
Viewed by asker 04/21/11 9:16am PDT
Viewed by asker 04/21/11 9:16am PDT
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SandyLenner
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03/17/11 6:49pm PDT
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The solution
Yes, the expense would be recorded as warranty exprense and the liability would be recorded in accounts payable as vendors give your the bills. If you use an employees then your would set up a payroll department to monitor/track the warranty expense
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Sandy Lenner,CPA,MBA
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Sandy Lenner,CPA,MBA
www.SL-cpa.net
