Explain whether each of the following events produces

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Amber Gray tells you that the accountants where she works are real hair splitters. For example, they make a big issue over the difference between a cost and an expense. She says the two terms mean the same thing to her.

Required: 

a. Explain to Amber the difference between a cost and an expense from an accountant's perspective. 

b. Explain whether each of the following events produces an asset or an expense:

(1) Purchased a building for cash. 
(2) Paid cash to purchase supplies. 
(3) Used supplies on hand to produce revenue. 
(4) Paid cash in advance for insurance. 
(5) Recognized accrued salaries.

Reference no: EM13919031

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