Question
Distinguish between:
Expenses and Expenditure.
Expenses and Expenditure.
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Basis
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Expenses
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Expenditure
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Meaning
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An expense is the value of the resource that was used up, or was necessary in order to earn the revenues during the time period.
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expenditure can be equated to outflow of money (not just cash but including
cheque payment).
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Examples
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The cost of the goods that were sold during the period are considered to be expenses along with other items such as advertising, salaries, interest, commissions, rent, and so on.
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The expenditure may be for the purchase of an asset like buying machinery, paying dues for items bought on credit, a distribution to the owners, buying raw material, paying for advertising, salaries, etc.
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