Nonoperating items on a multiple-step income statement ________.
A)appear on the income statement immediately after gross profit
B)appear only on income statements reporting a net profit
C)reflect the effects of financial management decisions
D)always arise from adjusting entries

Question

Quizplus · Accepted Answer

Nonoperating items reflect the effects of financial management decisions as they include revenues and expenses not related to the core operations of the business, such as interest and investment income or expenses.

Nonoperating Items on a Multiple-Step Income Statement ________