Why isnt interest added in operating income


1 Answer(s)


0

Interest is an expense that is not directly related to the core business operations of the company. For example a Pizza company makes and sells pizza. Paying interest is a non-core activity. If you included such a non-core activity into operating income then it would be an inaccurate representation of the business.

Your Answer

Click on this code-snippet-icon icon to add code snippet.

Upload Files (Maximum image file size - 1.5 MB, other file size - 10 MB, total size - not more than 50 MB)

Email
Password