If revenue is the inflow of assets, what is the term for the outflow of assets in a business?
Understand the Problem
The question is asking for the term that describes the outflow of assets from a business, which is related to financial concepts.
Answer
expenses
The final answer is expenses
Answer for screen readers
The final answer is expenses
More Information
In accounting, 'expenses' refers to the outflow of assets or incurrences of liabilities from delivering or producing goods or services.
Tips
A common mistake is confusing 'expenses' with 'liabilities,' but liabilities are obligations while expenses are costs incurred during operations.
Sources
- What is the term for inflows of assets from delivering or producing - homework.study.com
- Cash inflow and outflow: keeping tabs on your financial health - cubesoftware.com
- Cash outflow: Meaning, types, calculation, and best practices | Agicap - agicap.com
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