Which of the following describes the reporting of interest expense on the income statement?
A)It is reported as an operating expense.
B)It is a component of operating income.
C)It is deducted from operating income.
D)It is added to operating income.

Question

Quizplus · Accepted Answer

Interest expense is deducted from operating income on the income statement to arrive at net income. It is considered a non-operating expense, reflecting the cost of borrowing money.

Which of the Following Describes the Reporting of Interest Expense