Accounting Terms Glossary

Accounting Terms Glossary and Definitions

There are many Accounting Terms and Jargon, of accounting and financial practices, techniques, terms and language. We use a variety of these words to define and characterize the tools we use to record expenses, and to file, analyze, reconcile, and file expense reports. Find or know of an important term we have neglected? Please contact us to help us rectify this missing information.

Sources for Definitions:

http://www.investopedia.com/terms/e/expense.asp

Expense
noun: expense

  1. The cost required for something; the money spent on something. A thing on which one is required to spend money.

    synonyms: cost, price, charge, outlay, fee, tariff, levy, payment; informal,damage
    “the expense of entertaining”

  2. verb
    verb: expense; 3rd person present: expenses; past tense: expensed; past participle: expensed; gerund or present participle: expensing
    1.
    offset (an item of expenditure) as an expense against taxable income.

    synonyms:overhead, costs, outlay, expenditure(s), charges, bills, payment(s); incidentals
    “regular expenses”

ex┬Ěpense

1. the cost required for something; the money spent on something.
“we had ordered suits at great expense”
synonyms:cost, price, charge, outlay, fee, tariff, levy, payment; informal,damage,overhead, costs, outlay, expenditure(s), charges, bills, payment(s); incidentals
“regular expenses”

“the expense of entertaining”
the costs incurred in the performance of one’s job or a specific task, especially one undertaken for another person.

plural noun: expenses
“his hotel and travel expenses”
a thing on which one is required to spend money.

plural noun: expenses
“tolls are a daily expense”

synonyms: overhead, costs, outlay, expenditure(s), charges, bills, payment(s); incidentals
“regular expenses”

verb
verb: expense; 3rd person present: expenses; past tense: expensed; past participle: expensed; gerund or present participle: expensing

1. offset (an item of expenditure) as an expense against taxable income.

DEFINITION of ‘Expense’
1. The economic costs that a business incurs through its operations to earn revenue. In order to maximize profits, businesses must attempt to reduce expenses without also cutting into revenues. Because expenses are such an important indicator of a business’s operations, there are specific accounting rules on expense recognition.

2. Money spent or costs incurred that are tax-deductible and reduce taxable income.

INVESTOPEDIA EXPLAINS ‘Expense’
1. Expenses are the opposite of revenues. Examples of expenses include payments to suppliers, employee wages, factory leases and depreciation.

2. Tax authorities frequently have very specific regulations that allow people to deduct certain expenses if used for business-related activities. For example, a traveling salesperson is allowed to deduct traveling expenses (fuel expenses and car rental costs) as a business deduction, because those costs are an integral part of the job.

Read more: http://www.investopedia.com/terms/e/expense.asp#ixzz3a1oHRhBp
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