The distinction between operating and nonoperating income relates to:

Question

Quizplus · Accepted Answer

Operating income refers to an entity's primary business activities, while nonoperating income relates to activities outside of the entity's primary operations. The distinction is made based on the principal activities of the reporting entity. Continuity of income and consistency of income stream are not directly related to the distinction between operating and nonoperating income.

The Distinction Between Operating and Nonoperating Income Relates To