Expenditure is a technical term from the account system and the tax law, which designates a spending of money. Against the colloquial use here exact definitions apply.

Economically

An expenditure in the economical sense decreases the financial resources of the enterprise. Expenditures sit down together from the disbursements, the outlets of short term demands (including securities) and the entrances of short term commitments (including resetting). The opposite of an expenditure is an income.

• An expenditure must be not at the same time a disbursement. The supply to resetting about decreases the financial resources, which currency existence not affected.
• An expenditure must represent also no expenditure. For example if raw materials on a goal are bought, the financial resources decrease by the developing commitment. The raw materials increase the existence, thus the circulating capital. Werteverzehr does not take place.

See also:

• Disbursement, expenditure, costs
• Deposit, income, yield, achievement

For taxation

Expenditures are to be set off for the calendar year, in which they were carried out. Regularly recurring expenditures, which flowed off, are considered with the taxpayer short time before beginning or short time after completion of the calendar year, to which they belong economically, as in this calendar year spent.

See also: Extra charge, operating expenditure, expenses.

Articles in category "Expenditure (account system)"

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