Which of the following is considered an operating expense in governmental accounting?

In governmental accounting, operating expenses refer to the costs incurred by a government entity in the process of delivering services to the public. Personal services, which encompass salaries, wages, and associated benefits for government employees, fall under this category as they directly relate to the operation of government functions.

Governments allocate resources to pay their employees, and this expenditure is essential for maintaining public services. Therefore, personal services are a critical component of operating expenses, reflecting the direct costs connected to the workforce that provides various governmental services.

Other options listed, such as sales revenue, long-term liabilities, and investments, do not qualify as operating expenses. Sales revenue pertains to income generated from the sale of goods or services, which is a part of the revenue side rather than an expense. Long-term liabilities account for future obligations that a government might owe, while investments denote assets or financial instruments aimed at generating returns, neither of which pertains to the immediate costs of operation.