Expenditure

Spending money or incurring a liability for some benefit, service, or property received is called expenditure.

The purchase of goods, purchase of machinery, purchase of furniture, etc. are examples of expenditure.

If the benefit of expenditure is exhausted within a year, it is treated as an expense (also called revenue expenditure).

On the other hand, the benefit of an expenditure lasts for more than a year, it is treated as an asset (also called capital expenditure) such as the purchase of machinery, furniture, etc.