This document discusses different types of public and corporate expenditures. It defines expenditure as funds raised to acquire or upgrade productive assets, while an expense is an economic cost incurred to earn revenue. Expenditure includes capital expenditure (CAPEX) for buildings and equipment, as well as operating expenses (OPEX) like wages and bills. For corporations, CAPEX is a one-time procurement financed long-term, while OPEX is repetitive short-term costs and non-operating expenses (NOPEX) are occasional medium-term costs. Expenditures are reported on a balance sheet or cash flow statement, while expenses affect the profit and loss statement.

1. Finance
EXPENDITURE
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2. 2
Public Expenses
In term of Orientation
Investment Consumption
Protection Society Economy
- Defense.
- Law & Order
Maintenance
Expenditure
Transfers
- Health
- Education
- Projects
Development
- Infrastructure
- External
Investments
Goods
- Subsidies
- Imports
Services
- Rents
- Salaries of
expatriates
- International
Presentation
Debts
- External debt
service
Public
Salaries
Pensions Payments
to
contractors
Internal
debt
service

3. Is it “Expenditure” or “Expense” ?
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Expenditure
 Expenditure:
“The funds raised to acquire or upgrade productive assets in order to increase
the capacity or efficiency of the company” – CAPEX
Ex: buildings, machinery and equipment, vehicles, and intangible assets.
 Expense:
“The economic costs a business incurs through its operations to earn revenue.” -
OPEX
Ex: payments to suppliers, employee wages, factory leases, taxes, bills settlement, and equipment
depreciation.
In accounting terminology, there is one difference between Expense and
Expenditure. The Expense is the expired portion of an Expenditure.

4. 4
Corporate Expenses
In term of Orientation
Expenditure
CAPEX OPEX NOPEX

5. Application
 CAPEX
 OPEX & NOPEX
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Expenditure
CAPEX OPEX NOPEX
Reflection Capital Expenditure Operating Expense Non-Operating Expense
Procurement Only one time Repetitive Occasional
Source of Finance Long/Medium-term Short-term Medium/Short-term
Accounting Treatment Over economic life During one year During one year
Financial Reporting Balance Sheet
Cash Flow Statement
Operating Accounts
Profit & Loss Statement
Profit & Loss Statement

6. Thank you
Ahmed MOUSTAPHA
Manager – Corporate Finance
QNB ALAHLI Bank
am.moustapha3@gmail.com
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