Which of the Following Is an Operating Expense

question 26

Multiple Choice

Which of the following is an operating expense?

• A) Interest Expense
• B) Purchases Returns and Allowances
• C) Salaries Expense
• D) Prepaid Insurance Expense

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Definitions:

Warranty

A guarantee, provided by a seller or manufacturer, assuring the quality, performance, or lifespan of a product, often implying repair or replacement if specifications are not met.

Tender Of Performance

An unsuccessful (because it is rejected or prevented by the other party) attempt by one of the parties to a contract to perform its obligations under the contract.

Breach Of Contract

The violation of any agreed-upon terms or conditions in a binding contract, which can lead to legal consequences for the party in breach.

Designated Contract

A specific agreement set apart for a unique purpose or recognized formally in a particular context.