Interest Expense Would Be Classified on a Multiple-Step Income Statement

question 114

Multiple Choice

Interest expense would be classified on a multiple-step income statement under the heading

• A)Other expenses and losses.
• B)Other revenues and gains.
• C)Operating expenses.
• D)Cost of goods sold.

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Definitions:

Formal

Following or being in accord with established procedure, principle, or protocol, often in organizational or official settings.

Large Organizations

Companies or institutions with a large number of employees, complex structures, and extensive operational scopes.

Formalization

The extent to which rules, procedures, and standards guide employee behavior within an organization.

Centralization

The concentration of decision-making authority at the top levels of an organizational hierarchy.