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in this video were going to talk about what an expense is in financial accounting so when you hear the term expense you might just think about spending money and thats certainly a component of it in certain instances but its its a little bit broader definition than that so lets just talk about this when we think of an expense we really have some outflow or using up an asset or even incurring a liability you know getting a utility bill in the mail or something like that where you havent necessarily used an asset but you youve incurred uh this liability any of those things uh that is really resulting from delivering or producing goods rendering services basically something that relates to the firms core business operations so in that respect an expense is kind of the mirror image of revenue and that revenue also had this idea that it was distinguished from a gain in that it was related to the firms core business operations and not some kind of peripheral activity uh so so lets
