Which of the Following Is NOT Considered to Be an Operating

question 70

Multiple Choice

Which of the following is NOT considered to be an operating expense on the income statement?

• A) administrative expenses and overhead
• B) corporate taxes
• C) salaries
• D) depreciation and amortization

---

Definitions:

Legally

Pertaining to laws or regulations; in accordance with legal principles, rights, or standards.

Terminate Employees

The act of ending an employee's contract with the company, which can be due to various reasons including performance issues, redundancy, or misconduct.

Agency Shop

A workplace arrangement where employees, regardless of whether they are union members, must pay union fees for the collective bargaining services provided by the union.

Union Dues

Regular payments made by members to support the operations and activities of their labor union.