expenditure

(noun)

An amount expended; an expense; an outlay.

Related Terms

Examples of expenditure in the following topics:

  • Valuing Repairs, Maintenance, and Additions

    • Improvements to existing plant assets are capital expenditures because they increase the quality of services obtained from the asset.
    • The debit for such an expenditure is to the asset account, Automobiles.
    • The debit for such an expenditure is to the asset account, Automobiles.
    • If an expenditure that should be expensed is capitalized, the effects are more significant.
    • Explain what a capital expenditure is and how a company would account for it.

  • Expense Recognition

    • An important issue in accounting is when to recognize expenditures.
    • When a business recognizes an expenditure, it records the amount in its financial records.
    • The expenditure offsets the income the business earned and is used to calculate the business's profit.
    • If the business uses cash basis accounting, an expenditure is recognized when the business pays for a good or service.

  • Operating Expenses, Non-Operating Expenses, and Net Income

    • Its counterpart, a capital expenditure, or non operating expense, is the cost of developing or providing non-consumable parts for the product or system.
    • For example, the purchase of a photocopier is a capital expenditure.

  • Reporting Assets

    • A business must report an asset's acquisition cost, how it is depreciated, any subsequent expenditures tied to it, and how it is disposed.
    • For example, if a business installs GPS into one of its trucks so it can make deliveries more efficiently, the expenditure has improved the value of the asset.

  • Reporting R&D Cost

    • The capital expenditure costs are then amortized or depreciated over the life of the asset.

  • Types of Long-Lived Assets

    • Capital expenditures are incurred to get the asset "up and running".

  • Fundamental Concepts in Accounting

    • Accruals and Matching, revenue earned must be matched against expenditure when it was incurred

  • Overview of Lease Accounting

    • A lease allows a company to get a major piece of equipment with no large expenditure of cash.
    • An equipment lease allows a company to get a piece of equipment without a large expenditure.

  • Reporting Intangibles

    • Cost includes all costs of acquisition and expenditures necessary to make the intangible asset ready for its intended use—for example, purchase price, legal fees, and other incidental expenses.

  • Characteristics of Bonds

    • Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to finance current expenditure .