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- DictionaryEx·pense/ikˈspens/
noun
- 1. the cost required for something; the money spent on something: "we had ordered suits at great expense"
verb
- 1. offset (an item of expenditure) as an expense against taxable income: "up to $17,500 in capital expenditures can be expensed in the year they were incurred"
Learn the meaning of expense as a noun and a verb, with synonyms, examples, and word history. Find out how to use expense in a sentence and how it relates to business, tax, and personal affairs.
noun. cost or charge: the expense of a good meal. Synonyms: expenditure, outlay. a cause or occasion of spending: A car can be a great expense. the act of expending; expenditure. expenses, charges incurred during a business assignment or trip. money paid as reimbursement for such charges: to receive a salary and expenses. verb (used with object)
Learn the meaning of expense as a noun and a verb in English, with synonyms, idioms and business terms. Find out how to use expense in different contexts and sentences with examples from the Cambridge Dictionary.
Definitions of expense. noun. money paid out; an amount spent. synonyms: expenditure, outgo, outlay, spending. see more. noun. something for which one is required to pay money. see more. noun. money spent to perform work and usually reimbursed by an employer. “he kept a careful record of his expenses at the meeting” see more. noun.
- What Is An Expense?
- Understanding Expenses
- How Expenses Are Recorded
- Special Considerations
- The Bottom Line
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An expense is the cost of operations that a company incurs to generate revenue. It is simply defined as the cost one is required to spend on obtaining something. As the popular saying goes, “it costs money to make money.” Common expenses include payments to suppliers, employee wages, factory leases, and equipment depreciation. Businesses are allowe...
One of the main goals of company management teams is to maximize profits. This is achieved by boosting revenues while keeping expenses in check. Slashing costs can help companies to make even more money from sales. However, if expenses are cut too much it could also have a detrimental effect. For example, paying less on advertising reduces costs bu...
Companies break down their revenues and expenses in their income statements. Accountants record expenses through one of two accounting methods: cash basis or accrual basis. Under cash basis accounting, expenses are recorded when they are paid. In contrast, under the accrual method, expenses are recorded when they are incurred. For example, if a bus...
Capital Expenses
Capital expenditures, commonly known as CapEx, are funds used by a company to acquire, upgrade, and maintain physical assets such as property, buildings, an industrial plant, technology, or equipment. The IRS treats capital expenses differently than most other business expenses. While most costs of doing business can be expensed or written off against business income the year they are incurred, capital expenses must be capitalizedor written off slowly over time. The IRS has a schedule that di...
Not All Expenses Can Be Deducted
According to the IRS, to be deductible, a business expense "must be both ordinary and necessary." Ordinary means the expense is common or accepted in that industry, while necessary means the expense is helpful in the pursuit of earning income. Business owners are not allowed to claim their personal, non-business expenses as business deductions. They also cannot claim lobbying expenses, penalties, and fines.
An expense is a cost that businesses incur in running their operations. Expenses include wages, salaries, maintenance, rent, and depreciation. Expenses are deducted from revenue to arrive at profits. Businesses are allowed to deduct certain expenses from taxes to help alleviate the tax burden and bulk up profits.
An expense is the cost of operations that a company incurs to generate revenue. Learn about the different types of expenses, how they are recorded, and how they affect taxes and profits.
- Daniel Liberto
- 1 min
Learn the meaning, pronunciation and usage of the word expense in English. Find out the difference between expense and cost, and see idioms and collocations with expense.
2 days ago · Learn the meaning of expense as a noun and a verb, and see how to use it in different contexts. Find synonyms, pronunciation, grammar, and related words for expense.
