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.

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