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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


Team Careers360 25th Jan, 2024
Answer (1)
Team Careers360 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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