Quick Reference

1. A sum spent for goods or services, which therefore no longer represents an asset of the purchasing organization. Expenses are normally shown as charge against profit in the profit and loss account.

2. A sum of money spent by an employee during the course of his work. The employee records this expenditure in an expense account, for refund by the company and submission to HM Revenue and Customs on a P11D form for assessment of any taxable element.

Subjects: Business and Management.

Reference entries