Which items below would be classified as operating expenses?
A) Depreciation, capital leases, operating profit.
B) Interest expense, interest income, rent expense.
C) Accounts payable, lease payments, depreciation.
D) Advertising, selling and administrative, repairs and maintenance.

Question

Quizplus · Accepted Answer

Operating expenses are the ongoing costs of running a business, and include items such as advertising, selling and administrative expenses, and repairs and maintenance. Choices A, B, and C include items that are not typically classified as operating expenses, such as depreciation, interest expense, and accounts payable.

Which Items Below Would Be Classified as Operating Expenses