Which of the following expenses does not affect operating income?
A) Income tax expense.
B) Cost of goods sold.
C)Depreciation expense.
D)Rent expense.

Name: Which of the following expenses does not affect operating income? A) Income tax expense. B) Cost of goods sold. C)Depreciation expense. D)Rent expense.
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Question

Quizplus · Accepted Answer

Income tax expense is not an operating expense and is not included in the calculation of operating income. Instead, it is deducted after operating income is calculated to arrive at net income.

Which of the Following Expenses Does Not Affect Operating Income