Describe the term Operating Expenses
Describe the term Operating Expenses in business accountancy?
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Operating Expenses: For running industry or profession, we require operating expenses. Such expenditures are paid for day to day office lighting, rent, salary, insurance premium, Internet bill, travelling expenditures and lots of other expenses for sales and research. It as well comprises the depreciation on fixed assets.
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The following information is taken from the financial statements of an entity: 20x4 20x3 Property, plant and equipment $4,600,000 $4,200,000 Accumulated depreciation (1,800,000) (1,350,000) Depreciation expense 560,000 Gain on disposal of PPE 65,000 The asset disposed of had a cost
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