Examples of Nonoperating Items That Would Appear on an Income

question 86

Multiple Choice

Examples of nonoperating items that would appear on an income statement are:

• A) Interest income, sales salaries, gain on sale of land.
• B) Income taxes, interest expense, loss on sale of investments.
• C)Interest expense, gain on sale of equipment, loss on sale of investments.
• D)Depreciation expense, interest income, interest expense.

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Definitions:

David Ricardo

A British political economist known for his theory on comparative advantage, implying that countries should specialize in and trade goods in which they have a relative efficiency.

Theory Of Rent

A principle explaining how the price and allocation of land and its resources are determined based on their use, productivity, and locational advantages.

Efficiently Allocating

The process of distributing resources in a manner that maximizes the net benefits received from their use.

Long-term Investment

Assets that are held for an extended period, typically over one year, to generate growth, income, or capital gains, such as stocks or real estate.