What is Expense?
Expense in financial accounting is the money value for which benefit has already been taken.
Examples of expense are: salary, rent, repairs, depreciation etc.
Lets understand this by using ‘Rent’ as an example. We pay rent to landlord after staying in the building for specific time (say one month). After staying there for one month we have to pay rent for it. Since we are paying rent after availing the services it will be termed as expense. Now, if landlord has taken some security deposit in advance, this security deposit is not your expense as you have not yet availed the services for the same.
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