Which one of the following is NOT included in operating income?
A) sales
B) depreciation
C) interest expense
D) cost of goods sold
E) other operating expenses

Question

Quizplus · Accepted Answer

Operating income is calculated by subtracting operating expenses (such as cost of goods sold and other operating expenses) from revenues (such as sales). Depreciation is a non-cash expense that is subtracted from revenues to determine net income, but it is not considered an operating expense. Interest expense is also subtracted from revenues to determine net income, but it is not considered part of operating income because it is not directly related to the company's operations.

Which One of the Following Is NOT Included in Operating