Interest expense on a mortgage would be classified on a multistep income statement under the heading
A) general and administrative expenses.
B) selling expenses.
C) cost of goods sold.
D) other revenues and expenses.

Question

Quizplus · Accepted Answer

Interest expense on a mortgage is not directly related to the cost of goods sold or selling expenses, nor is it a general and administrative expense. Therefore, it would be classified under "other revenues and expenses" on a multistep income statement.

Interest Expense on a Mortgage Would Be Classified on a Multistep