For example, a painter may be paid for the service after it has been performed, and the incurred expense changes to a paid expense. Another example would be when a business enters into a lease agreement to rent office space for a period of two years. The business incurs the expense when it completes each of the agreed rent periods. An incurred expense becomes a paid expense once the business has paid the cost it owed the supplier of the goods or services.
Monitoring costs or agency costs to ensure that managers behave properly. In the dispute between the partners were incurred to protect and preserve the partnership’s assets. I had been so elated to be safe, and to have incurred his anger made me more unhappy than anything else could. They are not hardy in the UK, but they can stand a little frost without incurring damage. Only superficial damage was incurred and the stands and playing surface were unaffected. Certification program, designed to transform anyone into a world-class financial analyst. Must recognize and record the transaction on the date when it occurred rather than on the date when the transaction was actually paid.
What is meant by cost in accounting?
In accounting, costs are the monetary value of expenditures for supplies, services, labor, products, equipment and other items purchased for use by a business or other accounting entity. It is the amount denoted on invoices as the price and recorded in book keeping records as an expense or asset cost basis.
The financial statements are key to both financial modeling and accounting. For example, if the policyholder purchased flood insurance coverage for his business and floods cause damage to the business, the insurance company will be required to compensate the policyholder. You can incur penalties, expenses, a parking ticket, or a friend’s wrath, for example. But it’s pretty unlikely that you’d incur free tickets to the World Series.
Incur In American English
Frederick Douglass once famously said, “I prefer to be true to myself, even at the hazard of incurring the ridicule of others, rather than to be false, and to incur my own abhorrence.” To incur is to get or receive — and usually it’s something you brought upon yourself. If you don’t pay your credit card bills on time, you’ll likely incur lots of fees and some serious debt.
- More specifically, covered expenses for the entire procedure or course of treatment are not Incurred upon commencement of the first stage of the procedure or course of treatment.
- Those trusts transferred at least $7.9 billion to family members, an amount that would otherwise have incurred gift taxes of $2.8 billion.
- Each time PageRank transfers from page to page, it incurs a 15% loss, including across redirects.
- Incurredmeans that a covered expense is Incurred on the date the service is rendered or the supply is obtained.
An accountant plays a very crucial role in an organization, regardless of whether it is a multinational company or a small, domestic one. Whether you’re a teacher or a learner, Vocabulary.com can put you or your class on the path to systematic vocabulary improvement. Those trusts transferred at least $7.9 billion to family members, an amount that would otherwise have incurred gift taxes of $2.8 billion. You have 60 days from the day the statement is mailed to report any problem and incur no liability.
Examples Of Incur
Before paying any claims, an insurance company must first investigate the claims to verify if the loss actually occurred and that it is not a fraudulent process. The loss reserves may also be based on a forecast of losses that the insurer anticipates during a given period, which means that the forecast may be correct, excessive, or fall short of the actual claims during a given period. If the actual losses exceed the reserve, the insurer will be required to get additional funds to top up the reserve.
Most of the time, incurred expenses are paid immediately after they are incurred, while at other times, they may take several years before they are paid. The transaction is recorded in accounts payable since it is a cost that the business needs to pay in the future. For example, if Company XYZ purchases goods worth $1,000 on credit, the company will have an incurred expense of $1,000. Incurred losses refer to the value of losses that an insurance company incurs during a given period. The losses represent the profits that the company will not earn during the year because the money is used to pay policyholders. Re-evaluation of claims involves reviewing all the claims currently being processed to determine if their value is higher or lower than the amount recorded initially.
Examples Of Incur In A Sentence
Join Macmillan Dictionary on Twitter and Facebook for daily word facts, quizzes and language news. This is the American English definition of incur.View British English definition of incur.
What does it mean to have incurred?
to come into or acquire (some consequence, usually undesirable or injurious): to incur a huge number of debts. to become liable or subject to through one’s own action; bring or take upon oneself: to incur his displeasure.
American definition and synonyms of incur from the online English dictionary from Macmillan Education. Loss or restriction on the use of training lands attributed to climate factors incurs real costs in terms of time, money, and resources. But his financial situation was even worse than that, as he had incurred debts of $617,801 over the same period. Red debt through high-interest credit cards or payday loans to keep up with rent can’t qualify for emergency rental assistance because they don’t have past due rent. Red debt through high-interest credit cards or payday loans to keep up with rent can’t qualify for emergency rental assistance because they don’t have past due rent,” Srikrishnan writes.
Other Words For Incur
All of these might appear to be psychological defenses against incurring such a storm of criticism. $126 billion in costs at the outset to process new green card applications, the provisions would carry massive economic benefits.
Incurredand “Incurrence” shall have a correlative meaning; provided that any Indebtedness or Capital Stock of a Person existing at the time such Person becomes a Subsidiary shall be deemed to be Incurred by such Subsidiary at the time it becomes a Subsidiary. Any Indebtedness issued at a discount shall be deemed Incurred at the time of original issuance of the Indebtedness at the initial accreted amount thereof.
Incurred In British English
The department expects to incur costs of $3.7 million setting up credit monitoring and in lost productivity. The company incurred about $46 million in costs to achieve those sales, giving it about $71 million in net distributable assets. Companies incur additional costs in dealing with non-paying customers. The report did not reveal the exact number of disaster-affected families or the value of their incurred losses. Last night, there were only guesses as to the scale of financial and reputational damage incurred.
The change in the reserve amount will be a loss to the company because it was not anticipated. These example sentences are selected automatically from various online news sources to reflect current usage of the word ‘incur.’ Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Patients incur no copay for using online Doctor on Demand physicians for primary care visits or for accessing in-person preventive services as defined by the ACA, such as immunizations or cancer screenings. Incurred.Incurrable” and “Incurring” shall have meanings correlative to the foregoing); provided, however, that a change in generally accepted accounting principles that results in an obligation of such Person that exists at such time becoming Indebtedness shall not be deemed an Incurrence of such Indebtedness.
Incurredmeans that a covered expense is Incurred on the date the service is rendered or the supply is obtained. With respect to a course of treatment or procedure which includes several steps or phases of treatment, covered expenses are Incurred for the various steps or phases as the services related to each step are rendered and not when services relating to the initial step or phase are rendered. More specifically, covered expenses for the entire procedure or course of treatment are not Incurred upon commencement of the first stage of the procedure or course of treatment. A word used by accountants to communicate that an expense has occurred and needs to be recognized on the income statement even though no payment was made. The second part of the necessary entry will be a credit to a liability account. Any costs you do incur can also be spread over a longer period with monthly payments.
- Only superficial damage was incurred and the stands and playing surface were unaffected.
- Any Indebtedness issued at a discount shall be deemed Incurred at the time of original issuance of the Indebtedness at the initial accreted amount thereof.
- In the dispute between the partners were incurred to protect and preserve the partnership’s assets.
- Another example would be when a business enters into a lease agreement to rent office space for a period of two years.
- Re-evaluation of claims involves reviewing all the claims currently being processed to determine if their value is higher or lower than the amount recorded initially.
- Incurred losses refer to the value of losses that an insurance company incurs during a given period.
- The second part of the necessary entry will be a credit to a liability account.
The Structured Query Language comprises several different data types that allow it to store different types of information… Most companies buy raw materials in bulk from manufacturers and wholesalers on credit, with an agreement to pay at a later date. Indemnification is a legal agreement by one party to hold another party blameless – not liable – for potential losses or damages. You also typically incur other medical expenses each year of about $1,500. Despite the colossal investment that manufacturers incur on research and development, your tires are only good at doing one of those things at a time. The Issuer need not reimburse any expense or indemnify against any loss, liability or expense Incurred by an indemnified party through such party’s own willful misconduct or negligence as determined by a court of competent jurisdiction in a final, non-appealable order. Harold Averkamp has worked as a university accounting instructor, accountant, and consultant for more than 25 years.
How To Use Incurred In A Sentence
Free Financial Modeling Guide A Complete Guide to Financial Modeling This resource is designed to be the best free guide to financial modeling! Learn financial modeling and valuation in Excel the easy way, with step-by-step training. It’s even worse for those who drop out of college, since they would have incurred extensive debt without getting a college degree. The idea is that consumers who have to pay for their own healthcare will make better decisions and incur lower costs. Because the merely overweight do not incur many additional medical costs, grouping the overweight with the obese underestimates the costs of obesity. The client will remain liable for any loss incurred by the contractor. We incurred heavy expenses to repair the poor work done by the builder.
Each time PageRank transfers from page to page, it incurs a 15% loss, including across redirects. Astra is incurring a bill in excess of $1 billion globally for expenses including clinical development, Soriot said. These are smilar words, and share related meanings, but their uses are very different.
Examples Of ‘incur’ In A Sentence
Incurred costs of Design-Builder’s Field Work and incurred costs of Design-Builder’s Self-Performed Work for those bids and proposals accepted by Owner in writing, subject to the provisions of Section 2.7.1 above. An expense ratio is a fee charged by an investment company to manage the shareholders’ funds. Investment companies such as mutual funds often incur various operating expenses when managing investors’ funds, and they charge a small percentage on the funds under management to cover the expenses. The law requires insurance companies to maintain an adequate reserve from which it will make payments of old claims, as well as the new claims anticipated in the next period. The standard level of reserves varies from 8% to 12% of the annual revenues, depending on the state laws.
Once the company is satisfied that the claim is genuine, it then determines the accuracy of the recorded value. If the newly determined value of a claim is actually higher than the recorded claim, the company will be forced to pay a higher amount than it had planned. The excess claim paid is a loss to the insurer since it exceeds the amount recorded in the books. The balance sheet is one of the three fundamental financial statements.
Click on the buttons to learn more about these commonly confused words. And while outdoor spaces have been a godsend to restaurants since the beginning of the pandemic, owners incur additional expenses to build and then set up and break down outdoor dining. However, both companies incur sizable interest expenses lowering the net income margin by almost 10-percentage-points. Biosimilar developers also incur significant time and legal costs to challenge often meritless patents obtained solely to thwart competition. All options will also incur administration costs and in the second case, traders watching their margins, which could reduce the lump sum further.