ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Expenditure is the spending of money on something, or the money that is spent on something. [formal] Policies of tax reduction must lead to reduced public expenditure. They should cut their expenditure on defence. An expenditure for clothing will qualify as a trade or business expense.

Detailed explanation-2: -An expenditure is money spent on something. Expenditure is often used when people are talking about budgets. It is the government’s job to decide what to do with tax money collected, or in other words, to determine the expenditure of public funds.

Detailed explanation-3: -The three types of expenditure that a business can incur include capital expenditure, revenue expenditure, and deferred revenue expenditure.

Detailed explanation-4: -An expenditure is simply a purchase of products, goods, or services. Anyone can incur one: Buying a coffee, making an Amazon purchase, and hiring a lawn care company are all examples of expenditures you might encounter in your day-to-day life.

Detailed explanation-5: -Capital expenditure. A company incurs a capital expenditure when it buys an asset that has a life of more than one year (non-current asset). Revenue expenditure. This type of expenditure refers to when a company spends money on a short-term benefit (less than one year). Deferred revenue expenditure. 20-Dec-2022