The distinction between operating and nonoperating income relates to:
A)Continuity of income.
B)Principal activities of the reporting entity.
C)Consistency of income stream.
D)Reliability of measurements.

Question

Quizplus · Accepted Answer

Operating income pertains to revenue and expenses that arise from the primary activities of the business, while nonoperating income refers to revenue and expenses that are not a core part of the business's operations. Therefore, the distinction between operating and nonoperating income relates to the principal activities of the reporting entity.

The Distinction Between Operating and Nonoperating Income Relates To