Expense:

For generating the revenue the cost of the operation which expired with in the year is called expense.

Example: Rent expense, advertisement expense.

Advertisement expense:

It is an expense incurred by the company to promote its product, service, etc. It is presented in the income statement.

Capitalized cost:

Capitalized cost is the cost that is added to the cost of assets. If the costs of a development project are considering as deferred cost assets that it affected the balance sheet of the company.

GAAP:

GAAP stands for generally accepted accounting principles. It is the set of accounting principles and standards.

It was issued in 1973 for US public and private companies by the financial accounting standard board for issuing a public statement.

It is the set of accounting guidelines lines and rules used by the companies for financial reporting.

SEC:

SEC established securities rules and regulations for the accounting profession by sharing market information, and protection against fraud and accesses the investor to access the financial report and other securities form. As per the SEC position on the responsibility on the management, the financial report should be valid, accurate, and complete and according to the applicable financial reporting framework. His certification of fraud is clearly odd.