What is the term for the amount of money you must pay for goods or services?

What is the term for the amount of money you must pay for goods or services?

• A. Credit
• B. Wages
• C. Expense
• D. Check

Answer: (C)

Money you spend to buy goods or services is called an expense. This idea fits into budgeting because expenses are the amounts that leave your pocket and reduce how much money you have left. So when you buy something, like a notebook for five dollars, that five dollars is an expense—the money you paid out. This helps you track where your money goes. Other terms don’t fit as well in this context: credit means borrowing money you’ll repay later, wages are money you earn, and a check is just a way to pay someone.

Money you spend to buy goods or services is called an expense. This idea fits into budgeting because expenses are the amounts that leave your pocket and reduce how much money you have left. So when you buy something, like a notebook for five dollars, that five dollars is an expense—the money you paid out. This helps you track where your money goes.

Other terms don’t fit as well in this context: credit means borrowing money you’ll repay later, wages are money you earn, and a check is just a way to pay someone.