Expenditures and Expenses

Free CPA BAR (Business Analysis & Reporting) lesson in State and Local Governments. 19 min read, ~2,876 words.

Expenditures measure financial resource outflows under modified accrual; recognized when the liability is incurred and will be paid from currently available resources. Expenses measure economic resource consumption under accrual; recognized when the benefit is used, regardless of payment timing. Capital outlay is an expenditure in full when paid; converted to...