Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

Which of the following is not an operating expense?

Options:

Administrative expense

Loss by theft

Employees benefit expenses

None of these

Correct Answer:

Loss by theft

Explanation:

Operating expenses are the expenses incurred by a company during its regular business operations. These expenses are not directly related to the production or acquisition of goods or services but are necessary to run the day-to-day operations of the business. Operating expenses include office expenses, administrative expenses, selling expenses, distribution expenses, depreciation, and employee benefit expenses etc.