What term describes money spent on goods or services?

The term that describes money spent on goods or services is "expense." In financial contexts, an expense refers specifically to any cost incurred in the course of operating a business or managing personal finances. This can include payments for supplies, utilities, rent, or any other items purchased that provide value or utility. Understanding expenses is essential for tracking financial health, as they directly impact budgeting and overall financial management.

Revenue, on the other hand, is the total amount of money generated from sales or services before expenses are deducted, while income typically refers to money received, often as compensation for work or investments. Investment refers to the allocation of funds into assets with the expectation of generating a return, which is distinct from simply spending money on goods or services.