On the Income Statement of a Merchandising Company, Interest Income

Multiple Choice

On the income statement of a merchandising company, interest income and interest expense are reported:

A) By offsetting interest income and interest expense and showing the excess as an operating revenue or expense
B) As separate items of other income and expense below the net operating income or loss
C) As part of cost of goods sold
D) By showing interest income as additional sales revenue and interest expense as an operating expense