Question: In a multiple - step income statement, interest expense usually is not classified as an operating expense because interest charges: Multiple Choice Do not contribute

In a multiple-step income statement, interest expense usually is not classified as an operating expense because interest charges:
Multiple Choice
Do not contribute to the production of revenue.
Stem from the manner in which assets are financed, not the manner in which they are used in business operations.
Relate directly to the cost of goods sold.
The statement is incorrect. Interest usually is classified as an operating expense.

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