An accounting transaction (and an element of an entity’s income statement) that reflects the consumption of an asset (broadly, an economic resource) and ongoing payments like rent, utilities, maintenance, wages, salaries, etc.

An expense represents an amount of money spent and the costs incurred by a entity in the revenue generation process- that is, all types of payments that an entity incurs in running its operations and/ or other functions, collectively contributing to the activities involved in generating income.

There are many types of expenses mainly including operating expenses, non-operating expenses, fixed expenses and variable expenses.