Expense and Expenditure, any Difference?

An Expense is an overhead that is normally written off in the Income Statement.

On the other hand , an Expenditure means PAYMENT which may be a Capital Outflow or a Revenue Outflow. It is Capital when the payment is for a fixed asset whereas it is Revenue if the payment is an expense which is written off immediately from the Profit Loss account. It could also be Deferred Revenue Expenditure such Rent Prepaid , WHT Recoverable ,etc. This can be better enunciated when you are comparing a P&L account with an Income and Expenditure account.

Comments

  1. AnonymousAugust 5, 2013 at 6:43 AM

    Please drop a comment. Lets know what you think. Thank

    ReplyDelete
  2. AnonymousAugust 21, 2013 at 11:41 PM

    Keep it up,hv learnt a lot from this blog.

    ReplyDelete

Post a Comment

Popular posts from this blog

First 5 years in the UK as a Nigerian Expatriate (Migrant)

This information will equip you with essential information that will help you transit and settle-down seamlessly into the UK system. They are in no way exhaustive so it also good for you to conduct your  research in areas that are important to you.  This article is a response to specific questions asked by somebody who has gotten a job in the professional services space. Therefore, you will find that I've used a lot of terminologies in the professional services sphere that you can replace with terms that are common in your field. Question addressed here include.  1. Readiness for excellent working skills and workplace etiquette in the UK  2. Cost saving technique especially with family of 4  3. Process of Owing properties without ILR/PR - e g. House & it's benefits  4. Ways to fast track ILR/PR in the UK rather than waiting for the 5years period  5. List of other side hustle/business that someone can get involved to increase source of...
Read more

How Couples Can Resolve Loss of Income

Family's finances can become complicated when one member of the family is out of work. One of the parties is then responsible for caring for the rest of the family. There are three scenarios that can cause this to occur. The first aspect is the general unemployment state. This is the easiest part of the process because at least there is still the possibility that they will find employment regardless of how long it takes. Second, it is a result of long-term illness or permanent disability. Even though there is still a possibility that they may return to work, these are definitely trying times for the party left behind to care for the other party. Finally, if the other party passes away, this is the final scenario. In all of the above situations, it is essential for couples, whether they are already married or intending to marry, to prepare in advance, just in case anything happens to them. Fortunately, all of these risks can be insured. Do not wait for something bad to happen before...
Read more

Dreams Come True

Many times in our journey through life we shift grounds on possibilities. Many times we have this great dream with "high belief", optimism and are so certain that nothing could stop us from achieving them but after a few circumstances ( or passage of time), we soon give up on those dreams. All the optimism soon die down. All the beliefs and high hopes are thrown away and most times we settle for mediocrity. The man that succeeds is the man who holds on till the end. The one who hopes against hope!   The one despite his circumstances or little success, maintains his confessions and positive attitude towards his dreams and aspirations. This one is not worried about failing (or should I say he doesn't care). He is determined in his mind that even if his dreams do not come through, he will keep believing! For some of us there's no going back to our resolve for the good life, the dreams we hold in our heart day in day out. Even if we've got several "NOs", we ...
Read more