Multiple choice

Which of the following is an operating expense?

  1. Bad debts

  2. Salary of general manager

  3. Depreciation of plant

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Bad debts, management salaries, and depreciation of plant are all costs incurred in the normal operation of a business, thus they are all operating expenses.

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