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Expenditure
The use of goods and services in order to earn revenue is theexpense. Hendriksen opines, "expenses are the using or consuming of goods and services in the process of obtaining revenues". "Expense is the expired cost, directly or indirectly related togiven fiscal period, of the flow of goods or services into themarket and of related operations."
Expenditure
Expenditure incurred during the fiscal period and related to same accounting period becomes an expense i.e. expired cost of that period. Expenditure incurred during the previous accounting period but related to current accounting period becomes an expensei.e. expired cost of the current accounting period e.g. prepaidexpenses. Expenditure related to the current accounting period but not paid becomes outstanding expenses.
Expenditure
Expenditure is usually of two types (a) Capital expenditure; and (b) Revenue expenditure.