Which of the Following Is Not Reported as an Operating

question 46

Multiple Choice

Which of the following is not reported as an operating expense on the income statement?

• A) Salaries expense.
• B) Rent expense.
• C)Interest expense.
• D)Cost of goods solD.Interest expense is the result of borrowing money and not of day-to-day operations of making and/or selling products and/or services. Therefore, interest expense is not listed as an operating expense.

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Definitions:

Justice

The principle of fairness and the moral rightness of actions within society, including legal systems and ethical conduct.

Downsizing Decision

A strategic choice made by a company to reduce its size or the number of employees to cut costs and improve efficiency.

Fairness

The quality of making judgments that are free from discrimination, bias, and favoritism, ensuring equity and justice.

Job Insecurity

The fear or risk of losing one's job.