Why does interest expense typically appear below operating income on a multiple step income statement? A. Regardless of the type of company, interest expense is a cost of financing rather than a cost of operating activities. B. For companies other than financial institutions, interest expense is a cost of financing rather than a cost of operating activities. C. Interest expense really has no bearing on the profitability of a company, so it is reported on the bottom of the income statement. D. None of the above.