What aspect of business does expenses refer to?

Expenses refer to the cost of doing business, which encompasses all the expenditures that a company incurs in order to operate and generate revenue. This includes items such as salaries, rent, utilities, materials, and other operational costs necessary for the production of goods or services. By understanding expenses, businesses can analyze their profitability and manage their budgets effectively. Accurate tracking of expenses is crucial for financial statements, as it impacts both the income statement and overall financial performance of the organization.

The other options relate to different financial concepts but do not accurately describe what expenses are. Money received from sales pertains to revenue, while the overall financial health of a company is a broader measure that includes various indicators such as assets and profitability. Lastly, equity owned by investors refers to ownership interests in the company, which does not directly relate to expenses. Thus, identifying expenses as the cost of doing business provides a clear and specific understanding of this fundamental aspect of financial management.