Which is NOT a type of operating expense?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $9.99Unlock all

Prepare for the Florida Real Estate Sales Associates Post-Licensing Exam with comprehensive quizzes, engaging flashcards, and insightful explanations. Boost your confidence and ready yourself for the exam with a tailored study approach!

Multiple Choice

Which is NOT a type of operating expense?

Explanation:
Operating expenses are the cash costs of running the property that affect day-to-day operations. Depreciation is a non-cash accounting allocation of the building’s cost over its useful life, not a current cash outlay, so it isn’t included when calculating net operating income. Property taxes, insurance, and maintenance involve actual cash payments and are part of operating expenses, while depreciation is handled separately for tax and financial reporting purposes.

Operating expenses are the cash costs of running the property that affect day-to-day operations. Depreciation is a non-cash accounting allocation of the building’s cost over its useful life, not a current cash outlay, so it isn’t included when calculating net operating income. Property taxes, insurance, and maintenance involve actual cash payments and are part of operating expenses, while depreciation is handled separately for tax and financial reporting purposes.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy