Nonoperating items on a multiple-step income statement do NOT include ________.
A) interest income
B) interest expense
C) gain from disposal of a fixed asset
D) selling expenses

Question

Quizplus · Accepted Answer

Nonoperating items are items that are not directly related to the primary business operations of the company. Interest income and gain from disposal of a fixed asset are nonoperating items as they are not generated through the primary business operations of the company. Interest expense, however, is an operating expense as it is incurred in the course of generating revenue. Similarly, selling expenses are also operating expenses as they are incurred to promote and sell the company's products or services.

Nonoperating Items on a Multiple-Step Income Statement Do NOT Include