Expenditure VS Expenses
Expenditure is the outflow of money for the purpose of making various payments. Although expenditure and expenses are used synonymously, there is a thin line of difference. Expenses are a subset of expenditures.
Expenses are payments for made specifically for consuming goods and services, while expenditure includes payments made to buy assets. For instance, when a business acquires a machine, it would be called expenditure, while when the business pays for electricity for running the machine, this would be called an expense.
While expenses are borne for satisfying consumption needs, expenditure is made to facilitate future income generation. Expenditure can be classified as:
Short term vs long term
Fixed vs variable
Direct vs indirect
留言列表
