Investment is the good or service that, when acquired, forms part of the company's assets and produces profits for a period of more than one year.
For example, renting an office is an expense, because I will only be able to use it for the duration of the contract.
On the other hand, if I buy the same office it will be an investment because it will be an asset that will form part of my assets indefinitely.
In addition to what telegrama sa pilipinas has been said, I would like to highlight two fundamental differences between the two concepts:
Expenses always imply a decrease in assets, which does not occur in the case of investments.
Continuing with the example of the office above, renting represents an outflow of money that will not be recovered and that is a reduction in the company's assets.
When purchasing a property, however, what occurs is a change in the composition of the assets: before I had money and now I have an office of the same value, or before I had no debts and now I have an office and a debt of the same value.
