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In the example income statement above expenses fall into five major categories. The first three categories represent expenses from the company's normal business: (1) Cost of Goods Sold, (2) Operating Expenses – Selling , and (3) Operating Expenses – General and Administrative. The remaining two major expense categories refer to both gains and losses from activities that are not in the company's normal line of business: (4) Financial Revenues and Expenses, and (5) Extraordinary Items.