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

Question

Quizplus · Accepted Answer

Interest expense is not directly related to the operating activities of the company, nor is it included in the cost of producing goods or services. Therefore, it would be classified as Other expenses and losses on the income statement.

Interest Expense Would Be Classified on a Multiple-Step Income Statement