Question : Which of the following doesn't qualify as an operating expense?
Option 1: Salaries
Option 2: Maintenance and repairs
Option 3: Loss by Fire
Option 4: Bad Debts
Answer (1)
27th Jan, 2024
Correct Answer: Loss by Fire
Solution :
An expense incurred by a company as part of its regular business operations is known as an operating expense.
A business that suffers a loss from a fire cannot continue to operate because it is not carrying out its regular business operations.
Therefore, option 3 is the correct answer.
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