What are costs paid out in the course of doing business called?

Operating expenses?

I don't like the way they've worded the question. Costs can refer to anything paid out. The term "paid out" implies cash, and cash can be paid for expenses, assets, to pay off liabilities, etc.

If they are meaning expenses by that question, they are not teaching you accounting very well, because expenses should NOT be associated with money paid. It's already a bad pre-conceived idea everyone comes into class with, let alone having them re-enforce it! Or are you re-wording the question?

What is a claim against assets of a company b7 creditors called?