Free Guide to
Bookkeeping Concepts

Accounting Bookkeeping Concepts PDF Cover

Receive our free 18-page Guide to Bookkeeping Concepts (PDF) when you subscribe to our free newsletter.

You are already subscribed. This offer is not available to existing subscribers.
Step 2: Please check your email and click the confirmation link.


What is meant by nonoperating expenses and losses?

Nonoperating expenses are the expenses incurred by a business which are outside of its main or central operations. Nonoperating expenses are also described as incidental or peripheral. A common example is a retailer's interest expense. The retailer's main operations are purchasing and selling merchandise. Borrowing money is outside of its main or central operations.

Losses often involve the disposal of property, plant and equipment for a cash amount that is less than the carrying amount (or book value) of the asset sold. An example of a loss is the retailer's disposal of a delivery truck for a cash amount that is less than the truck's carrying amount. Another example is a loss from a settlement of a lawsuit.

Nonoperating expenses and losses are often reported on the income statement after the subtotal Income from operations and will often appear with the caption Other income and (expenses).