In a multi-step income statement,which of the following items is excluded from the calculation of operating income?
A)sales revenue
B)interest expense
C)selling expense
D)administrative expense

Question

Quizplus · Accepted Answer

Interest expense is a non-operating expense that is not related to the core operations of the business. Operating income is calculated by subtracting operating expenses (such as selling and administrative expenses) from revenue, but interest expense is excluded from this calculation.

In a Multi-Step Income Statement,which of the Following Items Is