Which of the following is not classified as an operating expense?

Debt service is classified as a financing expense rather than an operating expense. Operating expenses are the costs that are directly related to the day-to-day functioning of a business or property. They typically include costs like maintenance, taxes, and insurance, which are necessary for maintaining and operating a property or business.

Maintenance entails repairs and upkeep, taxes are obligatory payments to government authorities, and insurance provides protection against risk, all of which are essential for the regular operation of a business. Conversely, debt service refers to the costs associated with repaying borrowed funds, such as principal and interest payments on loans. This expense does not fall under the category of operating costs, as it is related to the financing aspect of business operations. Understanding the distinction between these expense types is crucial for accurately managing budgets and financial statements.