Saved Bookmarks
| 1. |
What is the difference between expense and expenditure? |
| Answer» \tParameters of ComparisonExpenseExpenditureMeaningIt is used when referring to past purchases, and also when talking about a single item purchased.It is used when referring to a whole list of purchases or any form of disbursement.Meaning (in terms of corporations)Expenses are the strategic purchases made by companies to increase their revenue.Expenditures are the final amounts on bills incurred due to the purchase of an asset by the corporation.Frequency of occurrenceExpenses are seen to occur many times over a given period (such as a fiscal year of an organization).Expenditures are final amounts, so they occur in lesser frequency over a specific period of a company.ReasonCorporations make expenses so that they can make ordinary day to day purchases for the company.Corporations make expenditures for significant assets and things concerning revenue.ExamplesExpenses for an organization include employee salaries and healthcare benefits. For citizens, it includes rent and food purchases.For corporations – capital investments and investment of shares. For citizens, it includes mortgages and property investments.Time frameWhen looking at financial accounts, expenses are always compiled for a small term due to the higher number of times they occur.In financial accounts, expenditures are compiled for a longer-term due to the lower number of occurrences.\t | |