Which of the following is not subtracted in arriving at operating income?
A) Interest expense
B) Cost of goods sold
C) Depreciation
D) Selling and administrative expense

Question

Quizplus · Accepted Answer

Interest expense is not subtracted in arriving at operating income. Operating income is calculated by subtracting operating expenses (such as cost of goods sold, depreciation, and selling and administrative expenses) from gross income. Interest expense is considered a non-operating expense and is subtracted later to determine net income.

Which of the Following Is Not Subtracted in Arriving at Operating