Why is interest expense reported as a non-operating expense and not as an operating expense on a

Question:

Why is interest expense reported as a non-operating expense and not as an operating expense on a multiple-step income statement?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting Tools for Business Decision Making

ISBN: 978-1118644942

6th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

See More Books

Question Posted: Jan 11, 2017 09:56 AM

See More Questions

Why is interest expense reported as a non-operating expense instead of as an operating expense on a multiple-step income statement?
Why is interest expense said to cost the firm substantially less than the actual expense, while dividends cost it 100 percent of the outlay?
Why is interest expense ignored when computing return on net operating assets (RNOA)?
b) A firm produces two types of sugar, A and B at a constant average cost of RM 2 and RM3 per kilogram, respectively. The quantities, q and qg (in kilogram) of A and B that can be sold each week are...
Joan Messineo borrowed $15,000 at a 14% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal, annual, end-of-year payments. a. Calculate the annual, end-of-year...
According to early research from Tolmans laboratoryfor example, the latent learning experiment (Tolman & Honzik, 1930) and Tinklepaughs bait-and-switch experiment with monkeys (Tinklepaugh,...
Courts have ruled that a stock dividend is not taxable income to stockholders. What justifies this decision? AppendixLO1
GoGo Juice is a combination gas station and convenience store located at a busy intersection. Recently a national chain opened a similar store only a block away; consequently sales have decreased for...
Preston Cotones and may fashion is to manage the countered the move the Prematy to show which product the company should want to conto de Product Moderately priced Designer Data Table Lapoor Designer...
Electrical heating of a pipe (Fig. 10B.8), in the manufacture of glass-coated steel pipes, it is common practice first to heat the pipe to the melting range of glass and then to contact the hot pipe...
Shoppers Drug Mart's biggest competitor, after Jean Coutu, is the Katz Group. Its Canadian stores include Rexall Drug Stores, Guardian, Medicine Shoppe, and Pharma Plus Drugmart, among others. Katz...
Explain the difference, if any, between gross profit margin and profit margin.
As a finance major, you realize that you can quickly estimate your retirement age by knowing how much you need to retire, how much you can contribute each month to your retirement account, and what...
1) Based on your research how do you view the financial health of Coca-Cola in absolute terms, over time, and as compared to sector/ industry peers/ S&P 500? 2) "Do your" views agree or disagree with...
How do you feel you performed during the field experience? Does this align with the supervisor s evaluation of your progress? Why or why not?
What if you decided to do a career revamp (or launch) project? I want you to assume that getting a degree is not the complete answer. Discuss briefly what that might entail and then address how...
What practical purpose do ATTRIBUTE HIERARCHIES serve? and What can be a practical example of using the power of attribute hierarchies in a query?
What are the couples fixed costs? in till debt do us part season 6 ep 1 https://tubitv.com/tv-shows/463869/s06-e01-tuned-out
Investigate numerically and graphically: lim X-too 12x + 1 4x+9
Horse serum containing specific antibody to snake venom has been a successful approach to treating snakebite in humans. How do you think this anti-venom could be generated? What are some advantages...
Data for Kicked-Back Tennis Shop are presented in P5-4B. In P5-4B At the beginning of the current tennis season, on April 1, 2012, the general ledger of Kicked-Back Tennis Shop showed Cash $4,000;...
You have been provided with the following selected accounts for Sparkles Inc. for the year ended June 30, 2012: Sparkles conducted a physical inventory count on June 30, 2012. Inventory on hand at...
The Goody Shop Ltd.'s adjusted trial balance amounts appear in alphabetical order as follows on November 30, 2012, the end of its fiscal year: Additional information: 1. The Goody Shop uses a...
A stock is expected to pay a dividend of $1.50 at the end of the year (i.e., D 1 = $1.50), and it should continue to grow at a constant rate of 10% a year. If its required return is 14%, what is the...
The Hobby Shop has a checking account with a ledger balance of $1,700. The firm has $2,400 in uncollected deposits and $4,200 in outstanding checks. What is the amount of the disbursement float on...
An investment will pay you $34,000 in 11 years. If the appropriate discount rate is 6.1 percent compounded daily, what is the present value? (Use 365 days a year. Do not round intermediate...

Why is interest expense reported as a non-operating expense and not as an operating expense on a

Question:

Step by Step Answer:

Interest expense is a nonoperating expense beca...View the full answer

Financial Accounting Tools for Business Decision Making

Students also viewed these Accounting questions