Revenue is the gross increase in owner equity. Revenue is the inflow of resource that added in owners equity. Opposite manner, expanse is the decreasing of owner equity. Exact definition of expanse is the cost of assets to earn revenue. Following example of revenue and expanse can give a clear conception and an apporiate difference between revenue and expanse. Selling of a furniture is the revenue, because the sold price will added to the total asset and ultimately increase the asset. On the other hand the labour price, cost of wood, other materials and marketing cost of the good is termed as expanses. Because these costs are due to earn revenue. The clear differentiation between revenue and expanse is helpful for the accountant for a complete financial statement.
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