In accounting, an expense represents an event in which an asset is used up or a liability is incurred. In terms of the accounting equation, expenses reduce owners' equity. Accountancy (British English) or accounting (American English) is the process of maintaining, auditing, and processing financial information for business purposes. ... In business and accounting an asset is anything owned which can produce future economic benefit, whether in possession or by right to take possession, by a person or a group acting together, e. ... In the most general sense, a liability is anything that is a hindrance, or puts one at a disadvantage. ... Basic accounting equation is the foundation for the double-entry book-keeping system. ...

The official definition of expense used by International Accounting Standards Board is (quotation from IFRS Framework): The International Accounting Standards Board (IASB) was founded on April 1, 2001 as the successor of IASC based in London, UK. IASB is responsible for setting International Accounting Standards. ...

Expenses are decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants. [F.70]

One specific use of the term in accounting is whether a particular expenditure is classified as an expense, which is reported immediately to the investing public in the business's income statement; or whether it is classified as a capital expenditure or an expenditure subject to depreciation, which is not. These latter types of expenditures are reported as expenses eventually, but not immediately, by businesses that use accrual-basis accounting, meaning all large businesses. Accountancy (British English) or accounting (American English) is the process of maintaining, auditing, and processing financial information for business purposes. ... Public is of or pertaining to the people; belonging to the people; relating to, or affecting, a nation, state, or community; opposed to private; as, the public treasury, a road or lake. ... Income statements for companies indicate how Net Revenue (money received from the sale of products and services before expenses are taken out, also known as the top line) is transformed into Net Income (the result after all revenues and expenses have been accounted for, also known as the bottom line... Capital expenditures (CAPEX) are expenditures used by a company to acquire or upgrade physical assets such as equipment, property, industrial buildings. ... Declining-balance depreciation of a $50,000 asset with $6,500 salvage value over 20 years. ... Cash-Basis Cash-basis accounting is a method of bookkeeping that records financial events based on cash flows and cash position. ...

In investing, one controversy that mounted throughout 2002 and 2003 was whether companies should report the granting of stock options to employees as an expense on the income statement, or should not report this at all in the income statement, which is what had previously been the norm. Look up Controversy in Wiktionary, the free dictionary For other uses, see Controversy (disambiguation). ... For album titles with the same name, see 2002 (album). ... 2003 (MMIII) was a common year starting on Wednesday of the Gregorian calendar. ... Main article: Option A stock option is a specific type of option that uses the stock itself as an underlying instrument to determine the options pay-off (and therefore its value). ... Employment is a contract between two parties, one being the employer and the other being the employee. ... Income, generally defined, is the money that is received as a result of the normal business activities of an individual or a business. ...