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Expenditure means which can be converted into cash again e.g. purchases of land building, machinery, gold etc. thus expenditure is not a loss to the concern and will increase the financial position of the concern.
Expenses means which cannot be converted into cash again.The concern may take utility or services in the lieu of that amount spent e.g., rent paid, salary paid etc. Thus it is a loss to the concern and will decrease the profit of the concern.
Financial Statements(or Profit and Loss Account and Balance Sheet) show mass complex data absolute monetary terms and reveal nothing about the liquidity, solvency and profitability of the business enterprise.
In other words, the significance of these statements lies not in their preparation but in their analysis. To analyse means to put the meaning of a statement in simple terms for the benefit of a person. In financial statement analysis of complex accounting data presented in Profit and Loss Account and Balance simplified, summarised and systematised so that it is easily understood by the layman.
computer is an electronic device which process information under the control of a set of instructions called program. It has the ability to accept data, execute the program, perform mathematical and logical operations on data.
Financial Accounting
