Question

3. All of the following are "other items" reported on a multiple-step income statement after income from operations except a. Interest income. b. Interest expense. c. Depreciation expense. d. Dividend income.

Answer 1

Answer 3 -

All of the following are other items reported on a multi step income statement after income from operations except - depriciation expense.

Depriciation expense is an operating expense. Other items include income and expenses which are non frequent and non operating.

Therefore, the correct answer is option (c), Depriciation expense.

Answer 2 -

When a component of a company's operation is classified as held for sale at the end of an accounting period, it may be classified as discontinued operation until it is sold. And it is reported in the balance sheet as lower of fair value less cost of sale and book value. In income statement, it is shown as income or loss from discontinued operations net tax.

Therefore, the correct answer is option (d), none of these choices apply.

Answer 2 -

Payments for the purchase of factory equipment would not appear in the financing activities section of the statement of cash flows. Because it is an investing activity. Financing activities include those activities, by which company is financed.

Therefore, the correct answer is option (c), payments for the purchase of factory equipment.