CASH EXPENSE Meaning and
Definition
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A cash expense refers to an immediate or direct outflow of cash from an individual or entity's financial resources in exchange for goods or services purchased. It essentially represents a transaction where actual physical currency or its equivalent, such as a check or credit card, is utilized for the payment of a current expense.
This type of expense is typically associated with day-to-day operational activities and necessary expenditures incurred in the normal course of business. It encompasses various items, including but not limited to salaries and wages paid to employees, utility bills, rent, office supplies, inventory purchases, and raw materials, which are all paid for with readily available cash on hand.
A cash expense stands in contrast to other types of expenses, such as non-cash expenses or accruals, which do not involve immediate cash outflows but have impact on financial statements over a specific time period. Cash expenses are reflected in the cash flow statement of an individual or company, as they directly affect the overall cash position.
Understanding and managing cash expenses is crucial for individuals and businesses to maintain liquidity and control financial health. Monitoring cash expenses helps in budgeting, expense control, and tracking financial resources. Proper management of cash expenses ensures that the available cash is allocated wisely and efficiently, contributing to the sustainable growth and stability of an organization or individual's financial standing.
Common Misspellings for CASH EXPENSE
- xash expense
- vash expense
- fash expense
- dash expense
- czsh expense
- cssh expense
- cwsh expense
- cqsh expense
- caah expense
- cazh expense
- caxh expense
- cadh expense
- caeh expense
- cawh expense
- casg expense
- casb expense
- casn expense
- casj expense
- casu expense
- casy expense
Etymology of CASH EXPENSE
The word "cash" originated from the Old French word "caisse", meaning "money box" or "chest", which ultimately came from the Latin word "capsa", meaning "box" or "chest".
The term "expense" can be traced back to the Latin word "expensa", which is the feminine form of "expensus", meaning "paid out" or "expended". This Latin word is a derivative of the verb "expendere", which means "to weigh out" or "to pay out".
When combined, "cash expense" refers to the payment or expenditure of money from one's cash funds.
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