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Incurred Meaning: Definition, Examples, and Translations

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incurred

[ɪnˈkɜːrd ]

Definition

Context #1 | Verb

financial context

Incurred refers to the process of becoming liable or subject to something, often relating to expenses or debts. It implies that a particular cost or burden has been taken on, typically as a result of an action or decision. This term is frequently used in accounting and finance to describe costs that a company or individual must pay.

Synonyms

accrued, accumulated, sustained.

Examples of usage

  • The company incurred significant losses last quarter.
  • She incurred additional fees for late payment.
  • The project incurred unexpected costs due to delays.
  • They incurred a debt when they took out a loan.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

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.

Origin of 'incurred'

Main points about word origin

  • 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.'

The word 'incurred' comes from the Latin 'incurrere', meaning 'to run into, rush in, or become liable to'. This Latin root is a combination of 'in-' (meaning 'in, into') and 'currere' (meaning 'to run'). The term evolved through the Old French 'encourir' in the medieval period before entering the English language in the 15th century. Originally, it had a broader sense of running into something but became more associated with financial obligations over time. The legal and financial contexts in which 'incurred' is often used contributed to its modern understanding, emphasizing the responsibility or liability that results from actions taken.

Word Frequency Rank

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.