Which of the following is an operating expense?
A) Salaries Expense
B) Payroll Tax Expense
C) Interest Expense
D) Both A and B are correct.

Question

Quizplus · Accepted Answer

Operating expenses are the expenses incurred in the day-to-day operations of a business, such as salaries and wages, payroll taxes, rent, utilities, and office supplies. Salaries Expense and Payroll Tax Expense are both examples of operating expenses. Interest Expense, on the other hand, is a non-operating expense as it is incurred due to borrowing money for long-term investments, rather than day-to-day operations.

Which of the Following Is an Operating Expense