expense

An expense is a cost incurred by a person or business to obtain goods or services needed for daily operations or personal use. It represents money spent to maintain, grow, or support functions, such as paying for rent, utilities, supplies, or salaries. Expenses reduce available income or profit and are recorded in financial statements to provide a clear picture of financial health. Managing expenses effectively helps ensure financial stability and supports budgeting, planning, and decision-making. In summary, expenses are the outflows of money necessary to keep things running smoothly in both personal and business contexts.