Which of the following is not an operating expense?
What are examples of non-operating expenses? Interest payments, the costs of disposing of property or assets not related to operations, restructuring costs, inventory write-downs, lawsuits, and other one-time charges are common examples.
Which of the following is an operating expense?
Often abbreviated as OPEX, operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development.
Which of the following is not a type operating expense structure?
The salaries expense, rent expense, and advertising expense are all considered to be part of the operating expenses. The interest expense is a non-operating expense, which means it is not involved in generating operating income.
Which of the following is not an annual operating expense?
Annual operating expenses will not include the following: depreciation, amortization, depletion, or other non-cash expenses, or any amount expended from a reserve account.
What is an example of an operating expense?
Salaries and wages are an example of this operating expense. Nice work! You just studied 8 terms! Now up your study game with Learn mode. THIS SET IS OFTEN IN FOLDERS WITH... 1. Start-Up Costs 1. Start-Up Costs 2. Costs of Goods Sold 4. Gross Income, Net Income, and Break-Even Point YOU MIGHT ALSO LIKE... 3.
What is an expense in accounting?
An expense is a cost incurred to generate revenues. Selling assets at a gain does not result in earning revenue. Revenues are reported on the income statement as they are earned. Revenues result in an increase in net income and additional paid-in capital. It should not be used when providing financial statements to external decision makers.
When are expenses and revenues recognized?
Expenses are recognized when incurred regardless of the timing of cash flows. Revenues are recognized when earned regardless of the timing of cash flows. Generally accepted accounting principles require use of the accrual basis.