Business Finance and Arithmetic — Entrepreneurship STD 11 Commerce — Question

An expense is the value of the resource that was used up, or was necessary in order to earn the revenues during the time period.

expenditure can be equated to outflow of money (not just cash but including

cheque payment).

The cost of the goods that were sold during the period are considered to be expenses along with other items such as advertising, salaries, interest, commissions, rent, and so on.

The expenditure may be for the purchase of an asset like buying machinery, paying dues for items bought on credit, a distribution to the owners, buying raw material, paying for advertising, salaries, etc.