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

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Mathematics

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15 September, 00:45

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

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Isiah Burke · Answer 1

Answer is c

Step-by-step explanation:

Interest expense has no relation with the companies' principal activities. Therefore, on a multiple-step income statement, besides the other expenses like lawsuit settlements, extraordinary losses from investments etc., interest expense is listed in the non-operating and other section.