Question

______ is/are example(s) of non-operating expenses.

• A. Loss on sale of assets
• B. Preliminary expenses written off
• C. Write off goodwill, trade mark, patents etc
• D. All the three

Answer 1

The correct option is D All the three

Expenses can be classified in two categories i.e. operating expense and non operating expense. Expense which are required to be spend for smooth running of the business are classified as operating expense. Any other expense other than the operating expense are called non operating expense. Loss on sale of assets, Preliminary expense and write off goodwill are the examples of non operating expense as these are not effecting the business operations.