Question

Which item would not be classified as an operating expense?

a. Interest expense.
b. Rent expense.
c. Depreciation.
d. Repairs and maintenance.

Answer 1

Interest expense is not considered an operating expense because it is not directly related to the operations of a business.

Step-by-step explanation:

The item that would not be classified as an operating expense is interest expense. Operating expenses are the costs that a business incurs in its day-to-day operations. Examples of operating expenses include rent expense, depreciation, and repairs and maintenance. However, interest expense is not directly related to the operations of a business but rather represents the cost of borrowing money.