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Expenses represent the dollar amount of resources the entity used to earn revenues during the period. Expenses reported. In one accounting period may actually be paid for in another accounting period. Some expenses require the payment of cash. Immediately while some require payment at a later date. Some may also require the use of, another resource such as an inventory. Item.Which may have been paid for in a prior period. Maxidrive lists five types of expenses on its income statement which are,, Described in Exhibit 1.3. These expenses include income tax expense which as a corporation,,, must Maxidrive pay on pretax. Income.
.The cost that represent the amount of tax resources used to get income during the period. Cost reporting accounting period, one may have to pay the real period other accounts.Some people may need to use other resources such as inventory items which may be paid in the previous period. These costs include the cost of income tax, which the company will have to pay income before taxes
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