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).

Free Financial Statements Cheat Sheet

299,388
Subscribers
You are already subscribed. This offer is not available to existing subscribers.
Error: You have unsubscribed from this list.
Step 2: Please check your email.