What Are Expenditures In Accounting - Definition - Meaning - Examples - Explanation - Types
Expenditures are the costs against which payment is made in advance but the benefits against which are received later on. The benefits will be received within one year known as Revenue Expenditures or Expenses or Expired Costs while if these are received for more than one year, then these will be treated as Capital Expenditures . Examples are Acquiring Costs of Fixed Assets , Cost of Acquiring Intangible Assets , Wages paid for the installation of machinery, construction of the buildings, Salaries, Expenses, Outstanding Expenses , Prepaid Expenses , Unearned Revenues , Accrued Incomes / Revenues , etc. You may also be interested in, “ Expenditures VS Expenses ” Types of Expenditures Capital Expenditures are those costs which acquired by the business for more than one year. These are incurred for acquiring Fixed Assets / No n Current Assets. Examples are Purchasing Costs of the Machinery, Buildings, Furniture, etc., Additions To Machinery, ...