Question

In: Accounting

In which expense category do salaries, rent, insurance, advertising and interest belong?

In which expense category do salaries, rent, insurance, advertising and interest belong?
Select one:
 

Solutions

Expert Solution

The correct answer is option (a) since all the given examples fall under the category of operating expenses. Operating expenses are those which are incurred in order to carry out the operations of the business and which are not directly related to the production of goods or services of the firm.

 

Ribika answered 2 years ago
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