Nonoperating items on a multiple-step income statement do NOT include ________.
A)interest income
B)interest expense
C)gain from disposal of a fixed asset
D)administrative expenses

Question

Quizplus · Accepted Answer

Nonoperating items are typically gains/losses or transactions that are unrelated to a company's core business operations. Interest income and expense, as well as gains from disposal of fixed assets, are considered nonoperating items. However, administrative expenses are a part of a company's operating expenses and therefore not considered nonoperating.

Nonoperating Items on a Multiple-Step Income Statement Do NOT Include