This was the question asked by our Professor today in our class and none of us were able to give the answer precisely. 5 years of commerce study and still there was a lot of confusion. Finally with a hint from our Sir we were able to relate expenditure to assets, but then it was given as an assignment to find out the answer for tomorrow.
So the best way to find an answer is to Google it! and so I did and there were many different sets of answers. But in all together what I understood was the Expenditure is more wider term than a expense. Actually Expense and Assets comes under the Expenditure. The main difference comes from the benefit derived from Expense and Expenditure. The benefit derived from incurring a expenditure MAY not be limited to the period (can be for longer period of time) where as the benefits derived from a expense are consumed in the same period (in same year)
For eg: If an asset is acquired during the year,it is expenditure but if it is consumed during the same year it is expense.
So the best way to find an answer is to Google it! and so I did and there were many different sets of answers. But in all together what I understood was the Expenditure is more wider term than a expense. Actually Expense and Assets comes under the Expenditure. The main difference comes from the benefit derived from Expense and Expenditure. The benefit derived from incurring a expenditure MAY not be limited to the period (can be for longer period of time) where as the benefits derived from a expense are consumed in the same period (in same year)
For eg: If an asset is acquired during the year,it is expenditure but if it is consumed during the same year it is expense.
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