Which of the following expenses does not affect the reporting of operating income?
A)Income tax expense.
B)Cost of goods sold.
C)Depreciation expense.
D)Rent expense.

Question

Quizplus · Accepted Answer

Income tax expense is not an operating expense and thus does not affect the calculation of operating income. The other expenses listed (cost of goods sold, depreciation expense, rent expense) are all operating expenses that are subtracted from revenue to determine the operating income.

Which of the Following Expenses Does Not Affect the Reporting