What do expenses refer to in a company's financial context?

In a company's financial context, expenses refer to the costs that are incurred in order to generate revenue. This includes expenditures for goods or services that the business must pay for in its operations. Option B, which mentions "monies owed for goods or services," aligns with the definition of expenses as it highlights the obligations a company has to pay for resources required for its functions.

Expenses reduce the profit of a business when calculating net income, reflecting the financial outlay necessary to maintain and grow the company. Understanding expenses is crucial for financial management, as they can greatly influence cash flow and overall profitability.

The other options do not accurately represent expenses. Income received from sales concerns revenue, which is the opposite of expenses; profits retained relate to the net gains of a company after expenses are deducted, showing financial outcomes rather than costs; and assets acquired consist of items that add value or benefit to the business rather than representing the costs incurred for operations.