Question

which of the following is an operating item? a. Interest Paid b. salary Paid c. diviend recevied d. Share capital issued

Answer 1

Salary paid is an operating item

Option b

Explanation:

An Operating item is basically a figure which calculates the amount of income or revenue the firm has earned in that particular financial year. This operating income can be derived after deducting things such as wages, salaries.

Here in our case, in the given four options salary paid is the operating item because after deducting salary, we will be able to find out how much revenue of the firm is turned into profit as salaries or wages will be paid to the employees from the revenue earned from that particular financial or accounting year. Therefore making salaries paid an operating item.

$\text { Operating cost }=\text { cost of goods sold }+\text { Operating Expenses. }$

Operating Expenses consist of the following,

• Administrative and office expenses like rent, insurance, salaries, directors fees, etc
• Selling and distribution expenses like advertisement, salaries of salesmen

Learn more on operating items

What is operating expenses and operating revenue?

https://brainly.in/question/12941025

What Are Operating Expenses?

https://brainly.in/question/9743799