Question

Which of the following would be included in the "Other Income and Expenses" section of a multi-step income statement?

1) Interest income
2) Dividend income
3) Gain on sale of assets
4) Loss on sale of assets

Answer 1

The "Other Income and Expenses" section of a multi-step income statement includes interest income, dividend income, gain on sale of assets, and loss on sale of assets.

Step-by-step explanation:

The "Other Income and Expenses" section of a multi-step income statement includes various types of income and expenses that are not directly related to the core operations of the business. Examples of items that would be included in this section are:

1. Interest income: This is income earned by the business from investments such as savings accounts, certificates of deposit, or bonds.
2. Dividend income: This is income earned by the business from owning shares of stock in other companies.
3. Gain on sale of assets: This represents the profit made by selling assets, such as equipment or property, for more than their book value.
4. Loss on sale of assets: This represents the loss incurred by selling assets for less than their book value.