Other (nonoperating) items follow operating expenses or the subtotal for operating profit.Most firms reporting under U.S.GAAP separately report financing costs, such as
A)principal payments.
B)interest revenue.
C)interest expense.
D)principal receipts.
E)none of the above

Question

Quizplus · Accepted Answer

Financing costs typically include interest expense, which is a nonoperating expense. Principal payments and receipts are not considered financing costs, and interest revenue is not a financing cost, but rather a type of revenue. Therefore, the best choice is C) interest expense.

Other (Nonoperating) Items Follow Operating Expenses or the Subtotal for Operating