Similarities & Differences Between Operating Expenses And Non-Operating Expenses
Operating Expenses are related wit h the day to day b usi ness operations. Examples are Rent Expenses, Salaries Paid, Marketing And Selling Expenses, Administrative Expenses, etc. T hese are recorded i n Statement of compre h ensive or Income Statemen t or Profit A nd Loss Account for t he period. These are Temporary Accounts so closed to income statement at t he e nd of t he accou nting period. N on Operating Expenses are not related wit h the b usi ness operations. Examples are Loss on t he sale of Fixed Assets, Restructuri ng Expenses, etc. T hese are also show n on Income Statement as t hese are temporary accou nts and closed to Income Summary Account at the end of the accounting period.