Expensed

The term 'expensed' refers to an amount of money that has been charged to an expense account, recorded as an expense in accounting practices. It typically signifies that a cost incurred in the course of business operations has been acknowledged and accounted for in financial records, impacting profit and loss. This term is commonly used in financial statements, budgeting, and expense reporting.

Expensed meaning with examples

• After conducting a thorough review of quarterly financials, the CFO realized that several travel-related costs had not been expensed, which could misrepresent the company's profit margins. It became crucial to ensure that all necessary items were accurately logged, guaranteeing that the books reflected the true financial state of the organization, thereby enabling informed decision-making for future budgets.
• In our startup, we diligently track every cost incurred, particularly those that are expensed, to ensure we maintain transparency with our investors. By carefully categorizing expenses, we can present a clearer picture of our financial health, showcasing where funds are being allocated and demonstrating our commitment to responsible financial management to our stakeholders.
• During the audit, the accountant discovered that some equipment purchases had been mistakenly expensed to the wrong category. This oversight could have significant implications on the financial reports, where an accurate representation of asset value and expenses is vital. Correcting this error is essential to maintain the integrity of the financial records and avoid potential regulatory issues.
• The marketing team submitted their campaign costs for reimbursement, ensuring that all expenses were properly documented and expensed in accordance with company policies. This process not only allows for timely compensation for team members but also helps track marketing expenditures, giving management a clear view of return on investment and the effectiveness of various strategies.