One more of accounting definitions - Expense is an asset or part of the asset which was consumed in the process of earning revenue. This is a basis for Matching Principles, which says that expenses can be recognised only when they were incurred to earn revenue.
Want more? Explore comprehensive Exclusive Members Area AccountingCoachPro.
This Package includes
Accounting Dictionary with over 1,000 accounting terms defined. Each accounting term is explained in plain English to ensure easy comprehension.
