Which of the Following Is Not Categorized as an Operating

question 15

Multiple Choice

Which of the following is not categorized as an operating expense?

• A) the cost of products being sold
• B) marketing costs
• C) administrative overhead
• D) amortization of goodwill

---

Definitions:

Cash Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits in the form of cash.

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies by reporting these profits as income.

Held-To-Maturity Securities

Investments in bonds or other debt securities that management intends to hold to their maturity.

Fair Market Value

The estimated price at which an asset would change hands between a willing buyer and seller, both having reasonable knowledge of the relevant facts, in an arm's length transaction.