Expense - What is the definition of expenses in accounting?

Q: What is the definition of expenses in accounting?

An expense is the cost of operations that a company incurs to generate revenue. Businesses can write off tax-deductible expenses on their income tax returns, provided that they meet the IRS' guidelines. Accountants record expenses through one of two accounting methods: cash basis or accrual basis.

Answer

A business's operational costs that it bears in order to make a profit are known as expenses. Assuming they adhere to IRS regulations, businesses can deduct certain costs from their taxable revenue. Two main approaches exist for keeping track of financial transactions: the cash basis and the accrual basis.

Expense - What is the definition of expenses in accounting?

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