Example of Difference Between Lost Expense and Expense

There are three concepts that can lead to confusion, these concepts are

• Lost
• Spending and
• Discharge

When handling these concepts, confusions tend to arise due to the similarity in the handling of the three ideas, so it is necessary to find the difference between loss, expense and expense, and thus know the best management of the ideas that are wanted to translate, especially in administration and accounting, where their management requires more accuracy.

Example of the difference between loss, expense and expense:

Lost.- In the loss, the costs are completely lost and do not obey any commercial regime because they are not useful for any, and these they can be lost as bad investments, decomposed, damaged or poorly manufactured merchandise, which instead of profits produce losses direct.

Spending.- Spending is any process in which capital is consumed, it can be positive or negative, but the concept of spending implies the outflow of money. In simple words, it is spending money.

Egress.- Expenditure is a measure that is taken on the expense in a specific account, and is carried in a book either in an Excel document or in physical form such as the ledgers and minor books.

Thus, on a sales day, income is indicated in black and expenses in red; at one point the total or final was written in blue, although it is usually written in black.

If you have a debit account, and you ask for the account statement, you will be given a document that marks the deposits (income you make) and the withdrawals or purchases (EXPENSES).

Thus, the expenditure can be defined as the final capital out of a specific account or several specific accounts.