Are Equipment an Expense?

The purchase of equipment is not accounted for as an expense in one year; rather the expense is spread out over the life of the equipment. This is called depreciation. From an accounting standpoint, equipment is considered capital assets or fixed assets, which are used by the business to make a profit.

Is equipment a liability or expense?

Cash, inventory, accounts receivable, land, buildings, equipment – these are all assets. Liabilities are your company's obligations – either money that must be paid or services that must be performed. A successful company has more assets than liabilities, meaning it has the resources to fulfill its obligations.

Is office equipment a revenue or expense?

Office equipment: Office equipment, unlike both office expenses and office supplies, is usually recorded as an asset and expensed over an extended period rather than expensed immediately.