Question

What type of expense would be shown on an income statement when the owner of a dirt racing track promoted an upcoming race by purchasing advertising time on a local radio station

Answer 1

operating expense

Step-by-step explanation:

The owner of the racing track spent money in advertising, and advertising expense is a type of operating expense. There are two main types of operating expenses: sales expenses and general and administrative expenses.

Sales expenses include advertising expenses, distribution costs, sales commissions, etc. While general and administrative expenses include administrative salaries, office expenses, etc.