Which of the following are typical nonoperating expenses?
I.Amortization expense.
II.Restructuring charges.
III.Litigation expenses.
IV.Purchased research and development (R&D).
A)I and II only.
B)I,II,and III only.
C)III and IV only.
D)I,II,III,and IV.

Question

Quizplus · Accepted Answer

Nonoperating expenses are costs that are not directly tied to the primary activities of the business. Amortization expense (I) is related to the gradual charging to expense of the cost of intangible assets over their useful life. Restructuring charges (II) are associated with reorganizing company operations. Litigation expenses (III) are costs related to legal actions, and purchased research and development (R&D) (IV) is an expense related to acquiring new technology or products that is not part of the company's ongoing operations. All these expenses are considered nonoperating because they do not directly relate to the core operations of producing and selling goods or services.

Which of the Following Are Typical Nonoperating Expenses