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

Question

Quizplus · Accepted Answer

Operating income refers to the primary revenue-generating activities of the reporting entity, while nonoperating income typically arises from activities that are not part of the entity's core business operations. Continuity of income, consistency of income stream, and reliability of measurements are not directly related to the distinction between operating and nonoperating income.

The Distinction Between Operating and Nonoperating Income Relates To