operating expense

Hi Joel,

Looking at some additional information about operating expenses I suspect that the reason why money borrowed from lenders is reporting as operating is that, said company is not self sustaining. Meaning that the lenders are used in large part more then 50% of the operating expenses are supplemented until the company can run on its own and various contracts. The same could be said for a company that runs on unearned revenue, where its part of the operating expense (I believe) until services have been rendered, additional payment may be required however if the project goes over that projection. If a company was self sustaining then it could be (again I believe) Interest Paid instead like if it was an investment towards an R&D Project. What do you think Joel?

Resources:

http://www.investopedia.com/terms/o/operating-activities.asp

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