Expenses that fall outside the regular operations of a business are ________.
A)not shown in the income statement of a merchandiser
B)treated as current assets and are shown as merchandise inventory
C)included under the other revenues and expenses section of the income statement
D)not considered for the calculation of net income

Question

Quizplus · Accepted Answer

Expenses that fall outside the regular operations of a business (such as interest expense, gains or losses on investments, or income tax expense) are included in the other revenues and expenses section of the income statement, which is located below the operating income section. They are separate from ordinary operating expenses and are considered in the calculation of net income. Therefore, choices A, B, and D are incorrect.

Expenses That Fall Outside the Regular Operations of a Business