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Finance & Banking vocabulary · Financial Statements

Expense

Meaning in finance & banking, with examples

/ɪkˈspens/nounCore term

In finance & banking, expense means: Money that a business spends, or a cost it records, in order to run its activities and earn revenue, such as salaries, rent or interest.

In Turkish: gider, masraf, harcama

How it is used

Used in accounting, budgeting and everyday office life. Companies cut, control and report expenses; profit is revenue minus expenses. Banks talk about interest expense, operating expenses (opex) and the cost-to-income ratio. Employees submit an expense claim after a business trip.

Example sentences

  1. Operating expenses rose by 12% because of higher salaries and IT costs.

  2. Please submit your travel expenses by the end of the month.

Common collocations

  • operating expenses
  • interest expense
  • cut expenses
  • expense claim
  • cost-to-income ratio
  • revenueThe total income a company receives from its normal business activities, such as selling goods or services, before any costs are deducted.
  • income statementA financial statement showing a company's revenue, costs and profit or loss over a period, such as a quarter or a year.
  • profitMoney a business earns after subtracting its costs from its revenue. When costs are higher than revenue, the result is a loss.
  • P&LShort for profit and loss: the income statement, or more loosely the profit or loss made by a business, unit, trading desk or project.
  • net incomeWhat is left of a company's revenue after all costs, interest, taxes and other expenses are deducted. When it is negative, it is called a net loss.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Financial Statements

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This page explains English vocabulary for learners. It is not financial advice.