Marvin is preparing one of the annual financial statements and has asked you which of the following should be included in operating expenses.You tell him it is:
A)marketing-related expenses.
B)the cost for independent dealers to prepare for the distribution of the product.
C)interest on all loans.
D)income taxes.

Question

Quizplus · Accepted Answer

Operating expenses are expenses related to the day-to-day operations of a business, such as salaries, rent, and marketing expenses. The cost for independent dealers to prepare for the distribution of the product would be considered a distribution expense, while interest on loans and income taxes would be considered financing and non-operating expenses, respectively.

Marvin Is Preparing One of the Annual Financial Statements and Has