Which of the following expenses is NOT considered an operating expense?

The cost of new equipment is classified as a capital expense rather than an operating expense. Capital expenses are expenditures that result in the acquisition or improvement of a long-term asset, such as equipment, buildings, or machinery, which will benefit the company for more than one accounting period. These costs are not deducted in the current accounting period but are capitalized and depreciated over the useful life of the asset.

In contrast, operating expenses are the regular costs associated with running a business on a day-to-day basis, such as salaries, utilities, and rent. These expenses are necessary for operations and are fully deducted in the accounting period in which they are incurred, reflecting the ongoing costs to maintain the business's structure and functions. Thus, recognizing that new equipment expenses impact the long-term financial statements and cash flow differently than operating expenses is vital for accurately understanding financial performance.