Which of the Following Is Considered an Operating Expense

question 28

Multiple Choice

Which of the following is considered an operating expense?

• A) Capital expenditures
• B) Equipment leasing
• C) Employees' wages
• D) The purchase of beginning inventory

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Definitions:

Special Journals

Special journals are accounting journals designed for recording specific types of transactions in a detailed manner, such as sales or purchases, to streamline the accounting process.

General Journal

A basic accounting ledger where all types of transactions are initially recorded, using a double-entry bookkeeping system, before being posted to specific accounts in the general ledger.

Sales Journal

A specialized accounting journal used to record all sales of merchandise on credit.

Accrual Basis

A financial recording technique that documents incomes and expenses as they are incurred or earned, without taking into account the timing of cash transactions.