Other revenue and expenses

Definition

Other revenue and expenses include income and costs that do not directly relate to the primary operations of a business. They are typically reported separately in a multi-step income statement.

5 Must Know Facts For Your Next Test

1. Other revenue often includes interest income, dividends, and gains from the sale of assets.
2. Other expenses can include interest expense, losses from asset sales, and any unusual or infrequent costs.
3. These items are listed after operating income but before net income on a multi-step income statement.
4. They provide insight into non-operational financial activities affecting profitability.
5. Proper classification helps in accurate financial analysis by separating operational performance from other financial activities.

Review Questions

Related terms

Operating Income:

Income generated from the core business activities excluding other revenues and expenses.

Multi-Step Income Statement:

A detailed financial report that separates operating revenues and expenses from non-operating ones.

Net Income:

The total profit of a company after all revenues and expenses, including both operating and other items, have been accounted for.