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

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Definitions:

Vertical Analysis

A method in financial statement analysis where each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.

Ratio Analysis

The quantitative analysis of financial information in a company's financial statements, used to evaluate performance, liquidity, profitability, and solvency.

Base Period

The specific time period used as a comparison benchmark for financial analysis or calculating indices.

Analysis Period

The specific timeframe during which financial or other data is examined for the purpose of making evaluations or decisions.