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Which of the following is not an expense?

A. Corporate income tax
B. Interest incurred on a note payable
C. Dividends
D. Wages of employees

1 Answer

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Final answer:

Dividends are not an expense; they are a distribution of a portion of a company's earnings to its shareholders. Corporate income tax, interest on notes payable, and wages of employees are all considered expenses.

Step-by-step explanation:

The item that is not an expense in the list provided is C. Dividends. Expenses are the costs incurred during the operation of a business. Corporate income tax is considered an expense as it is a cost associated with the profits that a corporation earns. Similarly, interest incurred on a note payable is an expense related to borrowing funds, and wages of employees are costs of labor which are necessary for the company's operations. However, dividends are a distribution of a portion of a company's earnings to its shareholders and are not considered a business expense, as they are not incurred in the operation of the business but are a distribution of profits.

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