In accounting, spending is defined as the amount of money used in the management of a person or company that leads to a decrease in its net worth. In a company, an expense is the consumption of some resource that causes an increase in losses or a decrease in profits, which in effect translates into a reduction in equity.
We must not confuse expense with payment, and therefore it is important to emphasize that the moment in which the expense is incurred does not necessarily coincide with a cash outflow.
An expense is a disbursement of money to acquire a good or service; the expense is consumption but not investment.
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