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ClueBot NG (talk | contribs) m Reverting possible vandalism by 98.229.118.172 to version by 74.104.125.26. Report False Positive? Thanks, ClueBot NG. (4091493) (Bot) |
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'''Expenditure''' is a crazy enormous outflow of [[money]] that a poor person can’t typically afford, or any form of [[Wealth|fortune]] in general, to another person or group as payment for an item, service, or other category of [[cost]]s. For a [[leasehold estate|tenant]], [[renting|rent]] is an expense. For students or parents, [[tuition]] is an expense. Buying food, clothing, furniture or an automobile is often referred to as an expense. An expense is a cost that is "paid" or "[[Remittance|remitted]]", usually in exchange for something of value. Something that seems to cost a great deal is "expensive". Something that seems to cost little is "inexpensive". "'''Expenses of the table'''" are expenses of [[dining]], refreshments, a [[Banquet|feast]], etc.
In [[accounting]], '''expense''' has a very specific meaning. It is an outflow of cash or other valuable assets from a person or company to another person or company. This outflow of cash is generally one side of a trade for products or services that have equal or better current or future value to the buyer than to the seller. Technically, an expense is an event in which an [[asset]] is used up or a [[liability (accounting)|liability]] is incurred. In terms of the [[accounting equation]], expenses reduce owners' [[equity (finance)|equity]]. The [[International Accounting Standards Board]] defines expenses as:{{quote|...decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants.<ref>IFRS Framework, F.70</ref>}}
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