Nonoperating items on a multiple-step income statement include interest expense and interest income.

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Nonoperating items are items that are not directly related to the primary operations of a business. Examples of nonoperating items include interest income or expense, gains or losses from the sale of investments or assets, and income from investments in other businesses. These items are typically reported separately from operating income on a multiple-step income statement.

Nonoperating Items on a Multiple-Step Income Statement Include Interest Expense