Which of these is not an expense type item?Group of answer choicesDepreciationDividends paid to shareholdersBank chargesCost of sales

The item that is not an expense type item among the given choices is "Dividends paid to shareholders".

Here's a step-by-step explanation:

1. Expense type items are those that reduce the earnings or profits of a business. They are usually in the form of cash or other assets paid out in the course of running the business.

2. "Depreciation" is an expense type item. It is the reduction in the value of an asset over time due to wear and tear, age, or obsolescence. This is considered an expense because it represents the cost of using the asset to generate revenue.

3. "Bank charges" are also an expense type item. These are fees that a bank charges for various services, such as account maintenance or transaction fees. These are considered expenses because they represent costs incurred in the course of doing business.

4. "Cost of sales" is another expense type item. This is the cost of producing the goods or services that a company sells. This is considered an expense because it represents the cost of generating revenue.

5. "Dividends paid to shareholders", however, is not an expense type item. Dividends are distributions of a company's profits to its shareholders. While they do represent a cash outflow, they are not considered an expense because they are not costs incurred in the course of generating revenue. Instead, they are a distribution of the profits that have already been earned. Dividends are typically recorded in the equity section of a company's balance sheet, not on the income statement where expenses are recorded.