Expenses

Expenses

1. Money spent by a firm to continue its ongoing operations.

2. Money spent or costs incurred that are deductible and reduce your taxable income.

Notes:

Expenses are the opposite of income. Costs that are not deductible are called "capital expenditures" and they must be depreciated or amortized instead.

See also: Capital Expenditure, Income, Net Income, Revenue, Selling, General, & Administrative Expenses-SG&A