Expensing


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Related to Expensing: expending

Expenses

Costs of living or doing business. Examples of personal expenses include the mortgage payment, groceries, and gas for the car. Examples of business expenses include the cost of materials, employee salaries, and other overhead. Expenses also include unusual costs like medical bills or employee bonuses. Businesses attempt to keep costs to the lowest possible amount without sacrificing revenue. This maximizes profit. Likewise, households generally attempt (and in many cases must) keep expenses lower than household income. While business expenses are generally tax deductible, most personal expenses are not.

Expensing

This term is used when a taxpayer claims the section 179 expense deduction, defined elsewhere in this glossary, or currently deducts certain other expenditures that would ordinarily be required to be capitalized.
References in periodicals archive ?
The big four accounting firms have all come out in favour of expensing.
Goldman Sachs, UBS Investment Research, Merrill Lynch, and Credit Suisse First Boston Equity Research have evaluated and all rejected claims that expensing stock options will have a significant negative market impact.
Therefore, Cincinnati and Union Pacific did not establish that Alacare's expensing of capital items costing under $500 resulted in a clear reflection of income.