Definition of Expense
That which is expended, laid out or consumed. An outlay; charge; cost; price. The expenditure of money, time, labor, resources, and thought. See also Costs; Fee.
Accrued expense. One which has been incurred in a given period but not yet paid.
Business expense. One which is directly related to one’s business as contrasted with personal expenses incurred for personal and family reasons. See Tax deduction, infra.
Current expense. Normal expense incurred, for example, in daily operations of a business. See Operat - ing expenses, infra.
Operating expenses. The cost of operating an income producing property, such as rent, wages, utili - ties, and similar day to day expenses, as well as taxes, insurance, and a reserve for depreciation.
Ordinary expense. See Ordinary.
Out of pocket expenses. A direct expense which requires the immediate outlay of cash in contrast to an accrued expense.
Prepaid expense. Payment of rent, interest, insurance, or like expenses, prior to actual due date. Cash basis as well as accrual basis taxpayers are generally required to capitalize prepayments for rent, insurance, etc. that cover more than one year. Deductions are taken during the period the benefits are received.
Tax deduction. Certain expenses such as those directly related to production of income are deductions from gross income for tax purposes.
That's the definition of Expense in Black's Law Dictionary 6th Edition. Courtesy of Cekhukum.com.
