Marvin is preparing one of the annual financial statements and has asked you which of the following should be inlcuded in operating expenses.You tell him it is:

Question

Quizplus · Accepted Answer

Operating expenses are expenses directly related to the day-to-day operations of the business, including costs associated with marketing and advertising efforts. B is not an operating expense since it relates to preparations made by independent dealers, not directly associated with the business operations. C and D are not operating expenses; interest and income taxes fall under financing and income tax expenses, respectively.

Marvin Is Preparing One of the Annual Financial Statements and Has