In around two minutes you will know what are Non-Operating Expenses. You will get both professional definition and easy explanation. No intro, no outro, straight to the point.
► My 212 Companies Watchlist: [ Ссылка ]
► Get $10 for Opening an Account with Wealthsimple: [ Ссылка ]
► Get $25 from Newton (Canada): [ Ссылка ]
► Get $10 in Bitcoin from BlockFi: [ Ссылка ]
► Get $30 from Shakepay (Canada): [ Ссылка ]
► Get $20 from Bitbuy: [ Ссылка ]
► Get $10 from Coinbase: [ Ссылка ]
► Open Binance Account: [ Ссылка ]
► Download my FREE eBook about Investments: [ Ссылка ]
► Follow Me On Instagram: [ Ссылка ]
Non-Operating Expenses are expenses that are not directly related to your core business’ activities.
Non-Operating expenses are recorded on the income statement. And if you are not sure what income statement means, feel free to watch one of my previous videos.
Interest payments, losses due to investments, amortization, depreciation, and losses from sales of assets, are just some of the examples of non-operating losses.
Non-operating losses mostly come from non-operating activities. Imagine, you are a company that sells furniture. Meaning that assembling, delivering, and installing furniture generated your operating income.
But if you company also does investments, this is a non-operating activity. If a company sells one of its warehouses, this is a non-operating activity either.
Doing such things are not your core business operations. These are just additional sources of revenue. And some of them happen just once or on a non-regular basis.
And when such non-operating activities bring loses to your company, they are called non-operating expenses.
Buying raw materials, paying salaries, marketing, these are operating expenses.
Losing money from investments, selling assets at a lower price than you purchased them for are non-operating expenses.
Even making interest payments are considered to be non-operating expenses. Even though, taking loans from banks is almost mandatory for a business to expand, no one forces you to do so. Meaning that debt management is your non-core business activity.
If you find my content interesting, please consider subscribing to my channel. It helps a lot as a beginner creator. And let me know if there is anything you would like to know about personal finances and investing.
