ECONOMICS

Detailed explanation-1: -Examples of non-operating expenses are interest payments on debt, restructuring costs, inventory write-offs and payments to settle lawsuits.

Detailed explanation-2: -In short, the cost of buying office furniture is not capitalized into the financial statement because, generally speaking, it’s considered an operating expense rather than an asset purchase.

Detailed explanation-3: -Answer and Explanation: The loss on the sale of equipment is reported in the statement of financial cash flow under operating activities as an addition to net income.

Detailed explanation-4: -Operating expenses include rent, equipment, inventory costs, marketing, payroll, insurance, step costs, and funds allocated for research and development.