Nonoperating Income and Expenses

1. Nonoperating expenses and losses include expense and loss accounts that are due to the transactions other than the primary operations of the company.

• Interest expense
• Loss on sale of securities
• Loss on sale of buildings
• Loss on sale of machinery
• Loss on sale of equipment

2. Interest expense account may be classified as operating expenses for banks and other financial corporations, whose primary operations are lending money to earn interest income.

3. Losses from discontinued operations are due to the disposal of business segment.

• Loss from operations of discontinued business segment
• Loss on disposal of business segment

4. Extraordinary losses include losses that unusual and infrequent.

• Loss on early extinguishment of debt
• Loss from fire
• Loss from flood
• Loss from earthquake