Question

Expenses

❖ The operating expenses for the year were R1 114 000 and included the following:
R
Finance costs 286 000
Insurance expenses paid for July and August 2024 72 000
Insurance expenses paid in advance – 1 July 2023 32 000
Donations (R40 000 is not tax deductible) 130 000
Based on the information given, when doing statement of profit or loss. Do I include the listed expenses because the statement above is stating that 'The operating expenses for the year were R1 114 000 and included the following:"

Answer 1

[AI-generated answer — Bot GPT 3.5]

Yes, you should include the listed expenses in the statement of profit or loss because they are part of the operating expenses for the year. The statement provided specifically states that those expenses are included in the operating expenses total.