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- Examples of expenditures are1234:
- Payments to acquire fixed assets, such as land, buildings, vehicles, equipment, etc. These are called capital expenditures and increase the long-term value of the company.
- Payments to reduce the outstanding balance of a loan, distribute dividends to shareholders, or buy back shares. These are called financing expenditures and affect the company's capital structure.
- Payments to operate a business, such as rent, utilities, wages, salaries, maintenance, depreciation, insurance, and the cost of goods sold. These are called expenses and generate revenue and keep the day-to-day operations running.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Examples of expenses are compensation expense, utilities expense, and the cost of goods sold. Examples of expenditures are a payment to acquire a fixed asset, a payment to reduce the outstanding balance of a loan, and a payment to distribute dividends to shareholders.www.accountingtools.com/articles/the-difference-b…Land, buildings, motor vehicles, manufacturing equipment, computers and office equipment are all examples of expenditures.www.indeed.com/career-advice/career-developme…Types of expenditures
- Capital expenditure A company incurs a capital expenditure when it buys an asset that has a life of more than one year (non-current asset). A building, for example, is a capital expenditure. ...
www.indeed.com/career-advice/career-developme…The bottom line is:
- Not all expenditures are expenses.
- Some examples of expenses are rent, utilities and salaries.
- Expenses generate revenue and keep the day-to-day operations of your business running.
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