Examples of Nonoperating Items That Would Appear on an Income

question 9

Multiple Choice

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

• A)Interest income,depreciation expense,gain on sale of land.
• B)Cost of sales,interest expense,loss on sale of investments.
• C)Interest expense,interest income,loss on sale of investments.
• D)Depreciation expense,interest income,interest expense.

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Definitions:

Book Value

The value of an asset as recorded on the balance sheet, calculated as the cost of the asset minus any depreciation.

Proportionate Book Value

The valuation of an entity's share in an investment, calculated based on the proportionate share of the invested entity’s book value.

Deferred Income Tax Asset

A balance sheet item that represents the difference between taxes already paid or accrued and the expected future tax payment, indicative of taxes that will be recovered in future periods.

Separate Income Tax Returns

Tax documents filed individually by entities or persons instead of jointly or as part of a consolidated group.