Asked by Molly Walsh on Jun 28, 2024
Verified
Gain on sale of equipment and interest expense are reported under other revenues and gains in a multiple-step income statement.
Gain On Sale
The profit that is realized from the sale of an asset or investment, which exceeds the purchase price.
Interest Expense
The expenditure on borrowed funds that an entity bears over a certain period.
- Distinguish between operating and non-operating activities within a merchandising firm.
Verified Answer
AZ
Aleah ZainulJun 29, 2024
Final Answer :
False
Explanation :
Gain on sale of equipment is typically reported under non-operating items or other gains/losses, while interest expense is usually reported under operating expenses in a multiple-step income statement.
Learning Objectives
- Distinguish between operating and non-operating activities within a merchandising firm.