Non-Operating Expenses

Non-operating expenses are costs that a business incurs outside of its regular core activities. These expenses aren't related to producing goods or services but come from other financial activities, such as interest paid on loans, losses from investments, or legal settlements. They appear on the income statement separately from operating expenses to give a clearer picture of the company's main business performance. Understanding these costs helps assess overall financial health, as they can significantly impact profit, even if they aren’t part of everyday operations.