Which of the following statements is false?

A) The income statement covers a period of time.
B) A loss on the sale of plant and equipment is considered a peripheral activity and is not reported on the income statement.
C) Rent expense is a component of operating income.
D) Interest expense is not a component of operating income.

Peripheral Activity

Refers to operations or actions that are not central to the primary business functions but may still generate revenue or incur costs.

Income Statement

A report that outlines a corporation's financial results for a particular accounting term, including income, costs, and profit.

Operating Income

Earnings before interest and taxes (EBIT), derived from a company's primary business activities.