What term refers to the money spent by the business?

What term refers to the money spent by the business?

• A. Revenue
• B. Profit
• C. Expenditure
• D. Investment

Answer: (C)

The term that refers to the money spent by a business is expenditure. Expenditure encompasses all costs incurred by a business in order to operate, including expenses related to production, selling, and administrative tasks. It is essential for businesses to track their expenditures accurately to maintain financial health and understand their cash flow. Revenue, on the other hand, is the total income generated from sales before any costs or expenses are deducted. Profit is what remains after all expenditures have been subtracted from revenue; it reflects the financial gain of the business. Investment pertains to the allocation of funds into projects or assets expecting to generate future returns. Thus, while all these terms are significant in financial contexts, expenditure is specifically about the money that a business spends.

The term that refers to the money spent by a business is expenditure. Expenditure encompasses all costs incurred by a business in order to operate, including expenses related to production, selling, and administrative tasks. It is essential for businesses to track their expenditures accurately to maintain financial health and understand their cash flow.

Revenue, on the other hand, is the total income generated from sales before any costs or expenses are deducted. Profit is what remains after all expenditures have been subtracted from revenue; it reflects the financial gain of the business. Investment pertains to the allocation of funds into projects or assets expecting to generate future returns. Thus, while all these terms are significant in financial contexts, expenditure is specifically about the money that a business spends.