Incurred: meaning, definitions and examples

Etymology

• The word comes from the Latin 'incurrere,' meaning 'to run into' or 'to fall into.'
• In the 15th century, the term was used in legal contexts, referring to taking on obligations.
• The prefix 'in-' adds the meaning of 'into,' while 'currere' relates to 'running,' indicating responsibility is 'run into.'

Legal Context

• In finance, incurred expenses are those that one has recognized but not yet paid, crucial in accounting.
• The term is frequently used in contracts, where parties must recognize liabilities that are incurred during the agreement.
• In law, to incur can mean to bring a particular responsibility or obligation upon oneself, often through actions or agreements.

Psychology

• Incurred costs can lead to feelings of anxiety, as individuals often fear the consequences of debt.
• The sunk cost fallacy occurs when someone continues a project to avoid incurring losses, despite a lack of future benefit.
• Understanding incurred responsibilities is vital in behavioral economics, influencing how people make financial decisions.

Pop Culture

• Movies often depict characters incurring debts that lead to dramatic events or comedic situations.
• The phrase 'you've incurred my wrath' is a common trope, indicating that someone's actions have severe repercussions.
• Songs about love often talk about incurring emotional risks, portraying relationships as investments.

Finance

• Incurred costs are essential for business accounting, distinguishing between occurrence and payment.
• Companies often report incurred expenses during financial statements to provide a clearer picture of their fiscal health.
• Debit cards incur charges immediately upon purchase, contrasting credit card systems where payments are delayed.

Ranking #3,088, this word is part of upper-intermediate vocabulary. While not among the most basic terms, it appears often enough to be valuable for advanced communication.

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