The document discusses the difference between assets and expenses. Assets are resources that will provide future economic benefits, while expenses represent the use or consumption of assets. An example is provided of a delivery truck purchased for $20,000 that is treated as an asset until its economic benefits are used up over 4 years, at which point the declining balance is treated as an annual expense. The key difference is that assets represent future economic benefits, while expenses represent the consumption of those benefits in the current period.