Which of the following is NOT typically considered an expense on an income statement?

Shareholder dividends are not recorded as an expense on an income statement because they represent a distribution of profits to shareholders rather than a cost incurred in generating revenue. When a company declares dividends, it is taking a portion of its profits and returning it to investors, effectively rewarding them for their investment in the company. This transaction is reflected in the equity section of the balance sheet rather than the income statement, where expenses are listed to show the costs associated with running the business.

On the other hand, costs such as the cost of goods sold, marketing expenses, and research and development are all expenses that directly relate to operating the business and generating income. They are essential for calculating the net income of a company, as they reflect the expenses that are deducted from total revenue.