Income from operations includes interest revenue and interest expense because these items are considered to be operating in nature.

Question

Quizplus · Accepted Answer

Income from operations only includes revenue and expenses directly related to the core operating activities of the business, such as sales revenue, cost of goods sold, and operating expenses. Interest revenue and expense are typically considered non-operating items and are included in net income, but not in income from operations.

Income from Operations Includes Interest Revenue and Interest Expense Because