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An expense is a cost that has expired and reported on the income statement.
An expenditure is a payment or disbursement. The expenditure may be for the purchase of an asset, a reduction of a liability, a distribution to the owners, or it could be an expense.
Mir Mujtaba has given a comprehensive answer. Agreed with him.
• The word expense is used in the sense of ‘price.’
• The word expense has its adjectival form in the word expensive.
• On the other hand, the word expenditure conveys the sense of ‘various expenses or costs involved in the running of a company or a firm or the conduct of an event.’ This is the major difference between the two words, namely, expense and expenditure.
There stands difference between expenses & expenditures on the basis of following assumptions,
1. Expenses means “a thing purchase and used remain/hold no value after using”. All expenses such as Salaries, Commission, Legal & Professional charges, etc. which immediately end its value after its use.
2. Expenditures means “a thing purchase and some value always stands with that thing. It’s like a purchase of an asset.
Expense is the cost occurs against the daily routine activity of the business. Expenditure is the cost occurs against long term investment.
Thank You for the invitation Sir.
agree with mr Mir Mujtaba Ali
An expense is reported on the income statement. An expense is a cost that has expired, was used up, or was necessary in order to earn the revenues during the time period indicated in the heading of the income statement. For example, the cost of the goods that were sold during the period are considered to be expenses along with other expenses such as advertising, salaries, interest, commissions, rent, and so on.
An expenditure is a payment or disbursement. The expenditure may be for the purchase of an asset, a reduction of a liability, a distribution to the owners, or it could be an expense. For instance, an expenditure to eliminate a liability is not an expense, while expenditures for advertising, salaries, etc. will likely be recorded immediately as expenses.
Here's another example to illustrate the difference between an expense and an expenditure. A company makes an expenditure of $255,500 to purchase equipment. The expenditure occurs on a single day and the equipment is placed in service. Assuming the equipment will be used for seven years, under the straight line method of depreciation the cost of the equipment will be reported as depreciation expense of $100 per day for the next2,555 days (7 years of service with365 days each year).
The Term Expense is for running or routing expenses
The Term Expenditure is for Capital nature expenses which will become part of an assets.
agree with all of you>>>>>>>>>>>>>>>
Expense:
An expense is a cost that has expired, was used up, or was necessary in order to earn the revenue during the time period.
Some time Expense is close category of what we spent.
Expenditure:
Expenditureis a payment or disbursement. The expenditure may be for the purchase of an asset, a reduction of liability, a distribution to the owners:
Expenditure is broad Category of what we spent. For example some time daily routine expense are also called expenditure. For example house hold expenditure.
Explanation:
Expenditure is not necessarily the same as an expense, since an expense represents the reduction in value of an asset, whereas expenditure simply indicates the procurement of an asset. Thus, expenditure covers a specific point in time, while an expense may be incurred over a much longer period of time. Effectively, there is no difference between the two terms when expenditure automatically triggers the incurrence of an expense; for example, office supplies are typically charged to expense as soon as they are procured. Conversely, the advance payment of rent is an expenditure, but does not become expense until the period has passed to which the rent payment applies.
Expense is used for "one" means any person how did something for company by his own pocket and then company refund that to him and expenditure are called to many expenses i-e traveling, entertainment, etc which are done by various person/department in the any company
