Expenditures and Expenses

Free CPA BAR (Business Analysis & Reporting) lesson in State and Local Governments. 19 min read, ~2,913 words.

Expenditures measure financial resource outflows under modified accrual; recognized when the liability is incurred and payable 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 a capital...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• III.C7

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