The primary distinction between operating activities and nonoperating activities in a multiple-step income statement is whether the activity is:

Question

Quizplus · Accepted Answer

Operating activities are part of the company's primary business operations, while nonoperating activities are typically peripheral or incidental to the core operations. The dollar amount or asset classification is not necessarily the defining factor in determining whether an activity is operating or nonoperating.

The Primary Distinction Between Operating Activities and Nonoperating Activities in a Multiple-Step