In finance,we separate operating decisions from financing decisions and thus exclude ________ as a part of operating income from the income statement.
A)cash flow
B)dividends
C)interest expense
D)earnings

Question

Quizplus · Accepted Answer

Interest expense is a financing expense and is excluded from operating income as it is not directly related to the company's core operations. Cash flow, dividends, and earnings may be considered as part of operating income depending on the specific context.

In Finance,we Separate Operating Decisions from Financing Decisions and Thus