Final answer:
Dividends paid to shareholders are not considered a business expense; they are distributions of profits and part of equity transactions, unlike interest payments, depreciation, and salaries, which are actual business expenses.
Step-by-step explanation:
The answer to the question, "Which of the following is not an expense of a business?" with options A) Interest payments on bank loans, B) Depreciation of existing equipment, C) Salaries paid to employees, and D) Dividends paid to shareholders, is D) Dividends paid to shareholders. Dividends are a distribution of profits to shareholders and are not considered a business expense. Instead, they are part of the equity transaction between the company and its owners and are recorded in the equity section of the balance sheet, rather than the income statement where expenses are recorded.
Interest payments, depreciation, and salaries are all typical business expenses. Interest payments are the cost of borrowing money, depreciation reflects the reduction in value of assets over time, and salaries are payments made to employees for their work.