A nonoperating item on a multiple-step income statement that reflects financial decisions is ________.
A)gain from sale of inventory
B)interest income
C)cost of sales
D)net profit

Question

Quizplus · Accepted Answer

Interest income is a nonoperating item that reflects financial decisions, such as investments in interest-bearing securities or loans. The gain from sale of inventory and cost of sales are both operating items that relate to a company's primary business activities, while net profit is the overall result of all revenues and expenses, both operating and nonoperating.

A Nonoperating Item on a Multiple-Step Income Statement That Reflects