In a Multiple-Step Income Statement,interest Expense Usually Is Not Classified

question 139

Multiple Choice

In a multiple-step income statement,interest expense usually is not classified as an operating expense because interest charges:

• A)Do not contribute to the production of revenue.
• B)Stem from the manner in which assets are financed,not the manner in which they are used in business operations.
• C)Relate directly to the cost of goods sold.
• D)The statement is incorrect.Interest usually is classified as an operating expense.

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Definitions:

Defence to Negligence

Legal reasons provided by a defendant in a lawsuit to prove they were not negligent or to mitigate their level of responsibility for an incident.

Waiver

The deliberate act of relinquishing a right, claim, or privilege.

Statute of Limitations

Laws that set the maximum time after an event within which legal proceedings may be initiated.

Duty of Care

A legal obligation to ensure the safety or well-being of others, typically applied to organizations, professionals, or individuals in specific roles.