Liabilities or Expenses???

[hendrik at topoi.pooq.com]

On Tue, Dec 01, 2009 at 08:44:24PM -0200, Daniel R. Bastreghi (D. Bastreghi - Transformando sites em negócios) wrote:
> Hello,
> 
>  
> 
> I installed GnuCash few days ago. I already read the documentation, but I
> have a simple doubt:
> 
>  
> 
> What is the difference between expenses and liabilities? When I use each
> one? It’s not clear to me.


A liability is something you owe.

And expense is value going away from you.

If you buy a pair od shoes, the cost of the shoes is an expense.
If you use a credit card to pay it, the amount you end up owing the 
credit card company is a liability.

-- hendrik