1. cost; charge: the expense of a good meal. 2. a cause or occasion of spending: A car can be a great expense. 3. the act of expending; expenditure.
Expenses can be defined as “Any cost that a business incurs in an attempt to maximize its revenues, and thereby its profits”. It is a cost to sustain and excel in business and results in an “outflow” of funds. An expense is a part of the income statement - a key financial statement.