“Although while speaking and writing many of us use the words expense and expenditure interchangeably, in accounting they have separate meanings. Expenditure refers to spending, or the outflow of money. We have seen that when money is spent, we either incur an expense or we create an asset.
This makes expenditure broader in scope than expense.
Expenditure encompasses both expenses and assets.
If you thought I had made a loss you probably calculated Profit as Income minus Expenditure instead of Income minus Expense!”