Title: What is an Expenditure? - Definition | Meaning | Example
Headings: What is an Expenditure?
What is an Expenditure?
What Does Expenditure Mean?
Example
Summary Definition

Content: The seller accepts the offer in January and the building inspection, appraisal, and insurance come through by the end of February. In March, Jim closes on the building and signs a mortgage with the first payment being due May 1. When does Jim record the capital expenditure? Jim should record the building purchase in March because that’s when he legally owned the building. To record this transaction, Jim would debit the building asset account and credit the mortgage account for $500,000. In the world of manufacturing, machinery is consistently changing and improving. The machinery a company uses to produce its goods may become obsolete in a few years. This is common with CNC machines. When a piece of machinery becomes irrelevant to its original purpose and it is no longer useful, upgrades become necessary. These upgrades are considered expenditures.