What is true about expenses in a medical practice?

The correct choice indicates that expenses represent the money that is spent to operate the practice. In a medical practice, expenses encompass various costs such as salaries, rent, utilities, medical supplies, and equipment maintenance. These expenses are essential for the day-to-day functioning of the practice and are crucial for maintaining operational efficiency.

When analyzing the financial health of a medical practice, it's important to understand expenses because they directly affect profitability. By knowing what the expenses are, a practice can better manage its budget, identify areas for cost-saving, and ultimately ensure that it has the resources necessary to provide quality patient care.

The other options do not accurately define expenses. For instance, expenses are not recorded under accounts receivable, which specifically tracks amounts owed to the practice from patients or insurance companies. Additionally, while patient payments are indeed a factor in the financials of the practice, they do not define what expenses are. Lastly, stating that expenses do not impact the practice's revenue overlooks the crucial relationship between costs and revenue generation; managing expenses effectively can lead to improved overall revenue.