Which of the following statements is correct?
A) Dividend income is a component of operating income.
B) Operating income is decreased by the loss from the sale of plant assets.
C)A gain on the sale of a stock investment does not increase operating income.
D)Income before taxes does not change when a gain results from the sale of plant assets.

Question

Quizplus · Accepted Answer

A gain on the sale of a stock investment is considered non-operating income and does not affect operating income, which is derived from primary business activities.

Which of the Following Statements Is Correct