This is the payment of cash, or its equivalent, to acquire goods or services.

Expenditure is usually categorised as either short term (revenue or operating expense) or long-term (capital expense). The accounting treatment for each category of expenditure is different with revenue/operating expenditure being recorded within the period in which it occurs and capital expenditure being depreciated across the expected life of the item.

Expenditure is a term normally found in financial accounting, financial management and financial reporting. Explore our learning zone to discover more

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