Interest expense would be classified on a multiple-step income statement under the heading a) Other revenues and gains. b) Operating expenses. c) Other expenses and losses. d) Cost of goods sold.

Question

Marcelo Beard

Mathematics

16 January, 03:47

Interest expense would be classified on a multiple-step income statement under the heading a) Other revenues and gains. b) Operating expenses. c) Other expenses and losses. d) Cost of goods sold.

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Royce Cummings · Answer 1

Answer is c

Step-by-step explanation:

Interest expense has no relation with the companies' principal activities. Therefore, on a multiple-step income statement, besides the other expenses like lawsuit settlements, extraordinary losses from investments etc., interest expense is listed in the non-operating and other section.