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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Last modified March 23rd, 2016 by Team

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