The distinction between operating and nonoperating income relates to: a. Continuity of income b. Reliability of measurements c. Consistency of income stream d. Primary activities of the reporting entity

Answer :

Answer:

d. Primary activities of the reporting entity

Explanation:

The operating income of an entity refers to the income earned by the entity from its normal course of business.

This is the income from activities defined in the company's memorandum and  article of association.

The nonoperating income is the income earned from sources not related to the ordinary activities of the company.

Examples include gains from investment property, sale of asset, foreign exchange gain/loss etc.

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