What are Expenses?
Expenses are a resource acquired by a business for monetary expenditure which has been used up during an accounting period. The expenses are charged to the businesses profit and loss account for that period.
The resource (e.g. Electricity) comes into the business and is a debit, and the monetary expenditure (e.g. Cash) goes out of the business and is a credit.
For further information on Expenses see the Wikipedia definition.
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About the Author
Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years in all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.