What is Expense - Definition And Meaning
What is An Expense Account / What Does Expense Mean Here we will study about the most important topic in Accounting that is “What is an Expense”? You may also be interested in “ Expenditures VS Expenses " Expense Definition Expenses are the costs incurred for the purpose of earning the Revenues . In expenses, at first, the business gets the benefit and then later on, the business makes the payment for that particular expense. Examples are Salaries, Telephone Bills, Electricity Bills, Fees Paid, Commission Paid, Rent Expenses, etc. These are also k nown as Revenue Expenditures . For Example, if the business paid Salaries To Employees During the Current Accounting Period For Rs. 1000000, then it is an Expense for the business and it is incurred for the purpose of operating the business effectively and ultimate generates sales for the business. Following Accounting Journal Entry is passed in the Book of Salaries ...