Question

One characteristic that distinguishes other financing sources from revenues is that other financing sources?

1) Are not related to the organization's core operations
2) Are not included in the organization's income statement
3) Are not subject to taxation
4) Are not considered as a source of funding for the organization

Answer 1

Other financing sources are not related to the organization's core operations and serve a different purpose than revenues.

Step-by-step explanation:

One characteristic that distinguishes other financing sources from revenues is that other financing sources are not related to the organization's core operations. While revenues are generated from the organization's primary activities, such as the sale of goods and services, other financing sources are external sources of funds that are obtained through borrowing or issuing bonds.

These financing sources serve a different purpose than revenues as they are used to meet the organization's capital needs, such as purchasing new equipment or expanding operations, rather than funding ongoing operations.

Additionally, other financing sources are typically not considered as a direct source of funding for the organization, as they are obtained separately from its core operations.