Katya owns a math-tutoring business. Her accountant most likely includes which of the following costs on her financial statements? (i)
Workbooks containing practice problems
(ii)
Rent for the storefront
(iii)
Wages Katya could earn as a bookkeeper
(iv)
Interest that Katya's money was earning before she spent her savings to set up the tutoring business

Question

Quizplus · Accepted Answer

The cost of workbooks containing practice problems and rent for the storefront are both associated with running the math-tutoring business and are therefore considered operating expenses. Wages Katya could earn as a bookkeeper and interest that Katya's money was earning before she spent her savings to set up the tutoring business are not directly related to the business and are not included as operating expenses.

Katya Owns a Math-Tutoring Business