Which of the following is NOT included in 'Operating Surplus'?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Wages in cash.
Wages in cash is NOT included in 'Operating Surplus'.
Operating surplus is a component of national income that represents the income from property and entrepreneurship. It is essentially the profit earned by businesses from their operations before deducting interest, rent, and other property income.
Wages in cash represent the compensation of employees for their labor and are a separate component of national income, known as 'Compensation of Employees'. Therefore, it is not included in the calculation of operating surplus.