The term expenses can further confuse those trying to understand expenditures and costs. A common term used in accounting and businesses along with expenditure and cost, an expense is also money spent. An expense is a cost of money, but one in which you know will further decrease your revenue and income. For example, if you own your business you will have to pay your employees. The money paid to your employees is an expense because you will be using business revenue to pay them accordingly. Although necessary, expenses are the "cost" of owning your own business.