Which one of the following is a nonoperating event that must be reported on the income statement?
A)Acquisition of a plant asset to be used in operations
B)Interest revenue
C)Recognition of inventory expense
D)Consumption of office supplies

Question

Quizplus · Accepted Answer

Interest revenue is a nonoperating event as it is not related to the primary activities of the business. The other options (acquisition of a plant asset, recognition of inventory expense, consumption of office supplies) are all operating events as they relate to the normal operations of the business.

Which One of the Following Is a Nonoperating Event That