Final answer:
An ordinary expense in business or tax accounting is an expense that is typical for the operations of a business and necessary for it to function, not necessarily recurring. Precision is not always necessary in personal or business finance management, and context and substance are more important than frequency.
Step-by-step explanation:
The statement that an expense need not be recurring in order to be "ordinary" refers to the concept of ordinary expenses in the context of business or tax accounting. In accounting terms, an ordinary expense is one that is common and accepted in a particular trade or business. This definition does not require the expense to occur regularly or be repeated. For example, purchasing equipment for a business might be considered an ordinary expense, although it's a one-time cost
. The main criterion is that the expense is typical for the operations of the business and necessary for it to function properly. While managing personal or business finances, precision in accounting for every cent is not always necessary. People often use estimated expenses and are more focused on the practicality of the financial management process rather than strict accuracy. Therefore, when accounting for ordinary expenses, both the context and the substance of the expense are considered, not just the frequency of its occurrence.