![]() ![]() If an expenditure is for a minor amount that may not be consumed for a long period of time, it is usually charged to expense at once, to eliminate the accounting staff time that would otherwise be required to track it as an asset. For example, if goods are sold in January, then both the revenues and cost of goods sold related to the sale transaction should be recorded in January. Under the matching principle, expenses are typically recognized in the same period in which related revenues are recognized. Reflects a payment not involving trade payables, such as the interest payment on a loan, or an accrued expense. Reflects the charging to expense of an asset, such as depreciation expense on a fixed asset.ĭebit to expense, credit to other liabilities account. Reflects a purchase made on credit.ĭebit to expense, credit to asset account. Reflects a cash payment.ĭebit to expense, credit to accounts payable. ![]() The accounting for an expense usually involves one of the following transactions:ĭebit to expense, credit to cash. If the amount paid had been higher than the capitalization limit, then it instead would have been recorded as an asset and charged to expense at a later date, when the asset was consumed. The purchase of an asset may be recorded as an expense if the amount paid is less than the capitalization limit used by a company. Under the accrual basis of accounting, an expense is recorded as noted above, when there is a reduction in the value of an asset, irrespective of any related cash outflow. Under cash basis accounting, an expense is usually recorded only when a cash payment has been made to a supplier or an employee. Examples of ExpensesĬommon expenses are the cost of goods sold, rent expense, wages expense, and utilities expense. If the expense is for an immediately consumed item, such as a salary, then it is usually charged to expense as incurred. If the underlying asset is to be used over a long period of time, the expense takes the form of depreciation, and is charged ratably over the useful life of the asset. Send us feedback about these examples.An expense is the reduction in value of an asset as it is used to generate revenue. These examples are programmatically compiled from various online sources to illustrate current usage of the word 'expanse.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Tyrone Beason, Los Angeles Times, See More Lydia Mansel, Travel + Leisure, 14 June 2023 At the same time, Black Americans have long embraced the power of the cosmos to liberate the spirit - transforming the empty expanse of space into fertile territory brimming with new possibilities and luminous futures. Anna Nemtsova, The Atlantic, 16 June 2023 Keswick is mostly made up of residential homes interspersed on large expanses of land, but its key feature is a 100-plus-year-old property that reopened its doors to guests in 2022. 2023 There Oleshky was, less than ten miles away from her, across an expanse of river and floodwater. 2023 Powell Point, South Rim The best time to make your way to Powell Point is at sunrise or sunset when the broad expanse comes alive with color as the sun hits the rock. Joshua Emerson Smith, San Diego Union-Tribune, 4 Apr. 2023 City crews replaced the original four-lane bridge with two three-lane expanses, each with separate pedestrian and bicycle paths. began surveying the Juneau Icefield, a 1,500-square-mile expanse of ice, snow and rock straddling the border between Southeast Alaska and British Columbia. 2023 In the 1940s, a team of explorers headed by pioneering glaciologist William B. Lesley Evans Ogden, Discover Magazine, 7 Apr. John Landreneau, IEEE Spectrum, 24 June 2023 Once entirely icebound, Muir Inlet is now a watery expanse over 20 miles long. ![]() Recent Examples on the Web Without sunlight, solar panels become useless, their broad expanse then serving only to lose heat. ![]()
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