E - Acounting Glossary
Accounting definitions.
Source: Wikipedia.org
EBITDA
In accounting, EBITDA stands for "Earnings
before Interest, Taxes, Depreciation, and Amortization".
When companies publish their financial statements,
the most important metric for investors is the
company's income, which is calculated as the company's
revenue minus all its expenses. Some companies
also publish their EBITDA, which, these companies
usually claim, provides a more true picture of
the company's profitability than the "income"
number.
Expense
In accounting, an expense is a general term for
an outgoing payment made by a business or individual.
One specific use of the term in accounting is
whether a particular expenditure is classified
as an expense, which is reported immediately to
the investing public in the business's income
statement; or whether it is classified as a capital
expenditure or an expenditure subject to depreciation,
which are not. These latter types of expenditures
are reported eventually, but not immediately,
by business that use accrual-basis accounting,
meaning all large businesses.

