- Income Statement
- Net Sales
- Cost of Goods Sold
- Operating Expenses
On the Income Statement there are a few different types of expenses. There are selling expenses and administrative expenses. These expenses are related to the operations of the business. What would an example of non-operating expenses be? Interest expense is an example. This expense is the cost of borrowing money and is often separated out from the operating expenses and listed below the operating expenses.
| Selling Expenses: | |
| Sales Salaries | |
| + | Advertising Expenses |
| Bad Debt Expense | |
|---|---|
| + | Depreciation Expense |
| Miscellaneous Expense | |
| = | Total Selling Expenses |
| Administrative Expenses: | |
| Office Salaries | |
| + | Rent |
| + | Depreciation Expense |
| + | Insurance |
| + | Office Supplies |
| + | Miscellaneous |
| + | Totlal Administrative Expenses |
| Total Operating Expenses |