Which of these is not an expense type item?Group of answer choicesBank chargesCost of salesDividends paid to shareholdersDepreciation
Question
Which of these is not an expense type item?Group of answer choicesBank chargesCost of salesDividends paid to shareholdersDepreciation
Solution
The item that is not an expense type is "Dividends paid to shareholders". This is because dividends are a distribution of a portion of a company's earnings to a class of its shareholders, as determined by the company's board of directors. They are not considered an expense because they are a distribution of profits, not a cost incurred in the production of revenue.
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