Cool Dudes, a chain of record stores, is expanding and has obtained loans from several major banks. Cool Dude should record all interest associated with the loans as
A) operating revenues.
B) non-operating revenues.
C) operating expenses.
D) non-operating expenses.
E) cost of goods sold.

Question

Quizplus · Accepted Answer

Interest associated with loans is considered a non-operating expense because it is not directly related to the core business operations of selling records.

Cool Dudes, a Chain of Record Stores, Is Expanding and Has