In a multi-step income statement,which of the following items is excluded from the calculation of operating income?
A) gross profit
B) interest expense
C) selling expense
D) administrative expense

Question

Quizplus · Accepted Answer

Interest expense is typically considered a non-operating expense and is excluded from the calculation of operating income. Operating income is usually calculated as gross profit minus operating expenses (selling, general, and administrative expenses).

In a Multi-Step Income Statement,which of the Following Items Is