Legal Definitions - current expense

Definition: An expense incurred in running a business and producing output. It is also known as operating expense.

Example: Rent, utilities, salaries, and office supplies are all examples of current expenses. These expenses are necessary for the day-to-day operations of a business and are deducted from the revenue earned during the same period.

Explanation: Current expenses are the costs that a business incurs to keep its operations running smoothly. These expenses are deducted from the revenue earned during the same period to calculate the net income. For example, if a business earns $10,000 in revenue and incurs $5,000 in current expenses, its net income would be $5,000. This net income is then used to pay taxes, invest in the business, or distribute profits to shareholders.