Question

Question 2 of 8

2.0 Points
Income earned by the business from activities unrelated to its primary operations would be
classified as........ in the statement that measures its performance for a particular period.
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Answer 1

This type of income is known as non-operating income in the financial statements

Step-by-step explanation:

Non-operating income, as the world implies, is the income that a firm earns from activities that are not related to its main economic activity. An example would be a mall, whose main activity is the rental and management of commercial real estate, earning some income from short-term investments in the secondary market. This interest would be reported as non-operating income, and would be treated as such for financial, accounting, and tax purposes.