The operating expenses section of a multiple-step income statement for a merchandising company would not include
A)freight out.
B)utilities expense.
C)cost of goods sold.
D)loss on sale of equipment.

Question

Quizplus · Accepted Answer

The operating expenses section of a multiple-step income statement for a merchandising company includes expenses such as freight out, utilities expense, and loss on sale of equipment. However, the cost of goods sold is not considered an operating expense, as it is a direct expense related to the purchase and sale of the merchandise. It is instead deducted from the company's revenue to arrive at gross profit, which is then used in calculating the operating income.

The Operating Expenses Section of a Multiple-Step Income Statement for a Merchandising