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Distinguish between operating and nonoperating income in relation to the income statement.

Institution
Cambridge College
Course
Introduction to Economics

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Question:

Distinguish between operating and nonoperating income in relation to the income statement.



Answer:



Operating income includes revenues and expenses and gains and losses that are directly related to the

principal revenue generating activities of the company. Nonoperating income includes items that are not

directly related to these activities.
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Institution
Cambridge College
Course
Introduction to Economics
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