GENERAL KNOWLEDGE

Detailed explanation-1: -A non-operating expense is a cost that isn’t directly related to core business operations. Examples of non-operating expenses are interest payments on debt, restructuring costs, inventory write-offs and payments to settle lawsuits.

Detailed explanation-2: -In a company’s accounting system, non-operating expenses are applied against non-operating income. When expenses exceed income in this category, the company has a non-operating loss. For some businesses, financial investments can be a source of non-operating losses.

Detailed explanation-3: -The correct answer to the given question is option A. Cost of goods sold. The cost of goods sold is not a part of the other operating expenses category for a firm. This category may include costs such as selling expenses, administrative expenses, general expenses and research & development expenses.

Detailed explanation-4: -Investment income, gains or losses from foreign exchange, as well as sales of assets, writedown of assets, interest income are all examples of non-operating income items. Some of the non-operating income items are recurring, for example, dividend income, and interest income.