Expenses are the costs incurred by a business in order to generate revenue, and they play a crucial role in determining the profitability of an organization. They can include various types of costs such as operating expenses, cost of goods sold, and non-operating expenses, all of which impact net income. Understanding expenses helps in analyzing the overall financial performance and efficiency of a business, revealing how well it manages its resources to achieve profitability.
congrats on reading the definition of expenses. now let's actually learn it.