It is the delivery of an asset or increase of a liability necessary to obtain goods or services. It signifies the financial or economical sacrifice corresponding to the payment or the debt undertaken to obtain goods or services. For cash purchase of goods, the expense corresponds to the reduction of cash due to the payment. For credit purchase of assets, the expense represents an increase in liability. Salaries in a determined period represent an expenditure (paid or payable). An expenditure can be treated as an INVESTMENT, COST, OR EXPENSE.
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