Expensed Meaning: Definition, Examples, and Translations
๐ฐ
expensed
[ษชkหspษnst ]
Definition
financial context
The term 'expensed' refers to the act of recording an expenditure or a cost in accounting. When a company expensed a particular item, it indicates that the cost has been recognized and deducted from the company's profits. This is typically done to accurately reflect the company's financial status and report the performance in financial statements. It is important for maintaining accurate financial records and adhering to accounting standards.
Synonyms
Examples of usage
- The company expensed the cost of new equipment.
- Expenses must be expensed in the correct fiscal year.
- Travel incurred during business trips is usually expensed.
- All marketing costs will be expensed by the end of the month.
Translations
To see the translation, please select a language from the options available.
Interesting Facts
Business and Finance
- Recording expenses properly is essential for businesses to understand their financial health and profitability.
- Many companies use software for tracking expenses to streamline the process and improve accuracy.
- In accounting, different types of expenses can impact tax liabilities differently, encouraging strategic financial planning.
Cultural Significance
- In various cultures, how and on what people spend their money can reflect their values and priorities.
- Companies often analyze spending habits to create targeted marketing strategies that align with consumer behavior.
- Dining out and entertainment expenses have seen growth in urban cultures, indicating social trends over time.
Psychology
- People often feel emotions tied to spending, where purchases can be a source of joy or stress.
- Research shows that spending money on experiences rather than material items can lead to greater happiness.
- Budgeting strategies can significantly affect mental well-being, as overspending can cause anxiety.
Technology and Innovation
- The advent of mobile apps has revolutionized how people track and categorize their expenses.
- Artificial intelligence is now used in many financial applications to help users predict their spending patterns.
- Digital wallets and contactless payments have made tracking expenses faster but can also lead to overspending.
Origin of 'expensed'
Main points about word origin
- The word comes from the Latin term 'expensum', which means 'a payment made'.
- It's formed from 'ex-' meaning 'out' and 'pendere' which means 'to weigh', suggesting weighing how we use our money.
- The evolution of the word reflects its shift from a physical act of spending to the abstract recording of those actions.
The word 'expensed' derives from the root word 'expense', which comes from the Latin 'expensum', the past participle of 'expendere', meaning 'to spend'. The term entered the English language around the 14th century, originally referring to the action of spending money or resources. Over time, the term evolved, particularly in accounting contexts, to refer specifically to the record-keeping of such expenditures. While 'expense' captures the notion of a cost incurred, 'expensed' focuses on the action of recognizing that cost in financial ledgers. This development reflects the growing complexity and regulatory requirements of financial reporting in the modern economy.