Concept in Definition ABC

An expense is the accounting item (of money) that certainly and directly decreases the benefit, or failing that, increases the loss of pockets, in the event that this item of money has come out of the personal account of an individual or of a company or company.

The expense will always imply the disbursement of a sum of money that can be in cash or, in the case of an expense that will be faced through the bank account, it will entail a movement from Bank, which is called.

An expense can take the form of payment for a service such as electricity, gas, telephone, mobile, the subscription of the cable service, among others and also other very common modalities of expenses such as the purchase of some personal effect, such as a jean, a T-shirt, a pair of shoes, food and any other need or taste that involves the disbursement of money in any of the forms in force today in day.

This that we mentioned, with respect to the individual expenses in which a person can incur, meanwhile, in the case of expenses of a company there are some more considerations, since some expenses in which a company may incur at some point, with the

to run of time, they can be translated or turned into profits, even higher than the expense faced at the time.

For example, in purchases of merchandise carried out by a certain business or company, not everything is outflow of money, that is, at the time the merchandise to be replaced is purchased, it is incurring an expense, but then that expense can be more than recovered if the merchandise manages to be sold in a short term and of course with a value higher than the one it was bought for.

On accounting There are two basic criteria that are followed when reflecting an expense. Beginning faithful image, in this case, an attempt will be made to collect the expense even if it is not one hundred percent real and the other principle, called prudenceIt will try to collect the expense as soon as possible, that is, when it has the idea that it is going to be produced.

Expenses Topics